The 200-day exponential moving average (EMA) seems to have been acting as a key support for the pattern’s handle. Hence, this would be a key level to watch as a break below may invalidate it.

If ETH breaks above $2,750, we could expect a strong push to $3,000 and a subsequent drop to retest this former resistance level from above.

If that happens and the price stays above $2,750, the pattern would be confirmed and this could result in gains of 49%. Typically, technical analysts use the handle’s size as a reference to predict how high the price could go after a bullish breakout.

In this case, this 49% gain could push Ethereum to $4,100, making this our mid-term target for the token if the pattern is confirmed.

What are the odds that this cup-and-handle pattern resolves to the upside? Momentum indicators have been dropping lately. However, the price action seems to be in a phase of consolidation. This could be interpreted as a period of accumulation.

Hence, as long as the price stays above its long-term EMA, ETH’s outlook will continue to be bullish.