Ethereum Tests $4,100 Resistance as Cup-and-Handle Pattern Forms

Ethereum has demonstrated resilience in recent trading sessions, consistently finding support in the $3,790 to $3,815 range after recovering from recent lows. The cryptocurrency is currently trading around $4,000, approaching a significant resistance band between $4,000 and $4,100 that has historically shown strong selling pressure. Analyst Ted observed that Ethereum has once again bounced from the $3,800 level and is now testing this critical resistance zone, noting that a successful close above this area could target the next resistance level between $4,236 and $4,265.

Beneath the current support level, a stronger secondary support zone exists between $3,550 and $3,670, providing additional protection against deeper price declines. The current market structure suggests Ethereum remains in a defined trading range, with multiple scenarios possible depending on how the asset reacts to the resistance zone. Analyst Lennaert Snyder highlighted the importance of the $4,050 level, noting he’s watching for potential short positions if resistance holds, or long entries if the price breaks through with strength.

On the 3-day chart, Ethereum appears to be forming a classic cup-and-handle technical pattern that has captured analyst attention. The cup portion took shape between January and August as prices gradually recovered from a prolonged downturn, while the handle is currently forming as a downward-sloping channel. Analyst Trader Tardigrade specifically highlighted three touches on both the upper and lower bounds of this channel, suggesting a controlled and well-defined range formation.

Trader Tardigrade noted that Ethereum has formed what he described as a ‘textbook cup-and-handle pattern’ with the handle showing three distinct touches at both the top and bottom of the channel. The analyst emphasized that a breakout represents the ‘next event’ for the pattern’s completion. A confirmed move above the top of the channel, particularly on higher trading volume, would likely validate the setup and suggest continuation to the upside, according to technical analysis principles.

Market analysts are presenting varied but cautiously optimistic outlooks for Ethereum’s near-term trajectory. Additional commentary from Joe Swanson described a triple bottom formation around $3,750, characterizing it as a potential setup for a breakout. Swanson added that a decisive move above $4,000 could trigger a 10% rally toward the $4,280 level, representing significant upside potential from current price levels.

EtherWizz offered an even more bullish perspective, noting that the market is entering what he described as a Wyckoff-style reaccumulation phase and projecting that Ethereum could reach $7,000 if the $4,200 level is successfully reclaimed. However, these technical analyses must be considered alongside upcoming macroeconomic events that could substantially impact market sentiment. Analyst Ted specifically pointed to the upcoming CPI data release and Federal Reserve meeting, suggesting these events ‘could bring some buy pressure in Ethereum and result in a short squeeze.’

While technical patterns suggest potential upside, traders remain appropriately cautious given the significant macroeconomic events on the horizon. The Federal Reserve’s meeting scheduled for next week, combined with upcoming CPI data, represents substantial catalysts that could override technical patterns and dictate short-term price action. These events have the potential to create volatility across financial markets, including cryptocurrencies.

The current market positioning reflects this uncertainty, with Ethereum trading in a tight range as participants await clearer directional signals. A confirmed breakout above $4,100 would likely shift momentum and attract stronger buying interest, while rejection at current levels could lead to another retest of support zones. The interplay between technical patterns and fundamental catalysts creates a complex trading environment where multiple outcomes remain plausible, requiring traders to maintain flexibility in their positioning and risk management strategies.