Each time ETH has touched this long-term trendline, it has bounced back with force, leading to significant rallies. Ethereum could be positioned for a sustained upside move if this trendline holds, reinforcing bullish expectations.

Unlike previous tests, Ethereum now faces weaker on-chain activity and rising competition from rival networks.

However, the upcoming Pectra upgrade and a dying memecoin market could prompt traders to rotate capital back into the Ethereum market, making its retest of a critical support level a bullish event altogether.

Another historical fractal from Ethereum’s 2020 cycle aligns with the current price action. Back then, ETH suffered a steep decline before bottoming in March 2020. What followed was a relentless uptrend that propelled Ethereum to a new all-time high above $4,800.