Ethereum’s Pattern Break Puts $4,000 Back on the Table — But Not Without Risks

Ethereum has shown renewed strength by decisively breaking out of a cup-and-handle pattern on the 12-hour chart, confirmed by expanding volume. This technical breakout places the $4,000 price target back on the roadmap, projected toward $4,010.

However, the rally is not without risks. Momentum indicators show a potential bearish divergence on the Relative Strength Index (RSI), suggesting weakening momentum unless Ethereum sustains a move above $3,360. Furthermore, the Short-term Holder Net Unrealized Profit/Loss (NUPL) has risen to a two-month high, indicating increased temptation for short-term holders to sell, similar to a previous pullback.

Despite the rising profit levels, on-chain data shows that spent coins activity is muted, suggesting short-term holders are not yet actively distributing. Key price levels to watch are holding above $3,250-$3,270 to maintain the breakout, with a sustained move above $3,360-$3,380 strengthening the bullish case toward $4,000. Failure to hold these levels could see support tested at $3,180 and $3,050.

(Source：BeInCrypto)