Ethereum is trading around $2,282, and the market is fixated on $2,389, the resistance level that has capped upside moves since March. On Coinbase’s daily chart, analyst Sky said on X that ETH is forming three possible cup-and-handle structures just beneath that barrier, putting the asset in a technically sensitive position as traders look for a breakout signal.
A daily close above $2,389 remains the main trigger
According to Sky, recent price action may look sluggish at first glance, but the chart shows three merging cup-and-handle formations. The first cup base appeared after an earlier selloff near $1,800, followed by a rebound into the $2,389 area. A second rounded bottom then formed between $1,950 and $2,000, with price once again returning to the same resistance zone.
So far, ETH has failed to produce a daily close above $2,389. Analysts cited in the report are watching a potential upside target between $2,950 and $3,300, but that scenario depends on a clear break and hold above resistance first. Until that happens, the setup remains an unconfirmed technical pattern rather than an active breakout.
Old downtrend line is back in focus as traders stay cautious
Another analyst, Cantonese Cat, wrote on TradingView that Ethereum is also testing a long-running descending trendline that began from the October highs. ETH briefly moved above that line in late April, then quickly slipped back below the breakout zone. That retreat matters. It shows buyers have not yet secured control of the chart.
In this reading, the current structure could reflect a so-called maximum pain scenario, where price drops back under the former breakout level, trades sideways for a period, and then attempts another move higher. The idea is still speculative. Cantonese Cat said ETH’s reaction around the old trendline will be decisive, and if the level holds, a rebound toward the $2,500 area is possible.
If Ethereum falls deeper below that old trendline, bullish momentum would likely weaken and leave the asset stuck in a volatile range for longer. Data from CryptoAppsy shows ETH at $2,282, down 0.37% over the past 24 hours. There is still no bullish confirmation, which puts added weight on the next few daily closes as traders wait for a clearer directional move.