Ethereum (ETH) Eyes Crucial Breakout as Analyst Predicts Potential Rally Beyond $4,080

• Ethereum’s breakout potential gains traction as a triangle pattern hints at a possible bullish push toward $4,080.
• RSI shows a bullish divergence, reinforcing Ethereum’s upward momentum even during pullbacks, signaling strength.
• ETH’s support at $2,400 and resistance at $3,000 present crucial levels for traders amid bearish and bullish scenarios.

According to analyst JavonTM1, Ethereum (ETH) is approaching a crucial breakout point that could signal a renewed bullish phase. Drawing on previous patterns, the price action suggests a potential upward movement. If Ethereum manages a breakout, the cryptocurrency might rally toward $4,080, a 63% gain from its current level. 

Consolidative Pattern Highlights Potential Breakout

Ethereum’s price movement forms a distinct triangle, with an upper boundary indicating resistance that, if breached, could propel ETH upward. Hidden bullish divergences around mid-2023 and the current consolidation phase boost this outlook. 

Such divergences, indicated by green arrows, suggest strengthening momentum and could support a continued uptrend. There is a steady support line from early 2023, demonstrating a consistent rise through higher lows into August. Horizontal lines mark resistance points near $2,100 and above, emphasizing these levels as pivotal in confirming a breakout.

ETH’s next target, if this pattern breaks to the upside, could see it aiming for levels beyond $2,400, with a potential rise toward $3,000. However, should Ethereum fail to maintain its support, a move below the triangle could lead to a retest near $1,800.

RSI Suggests Momentum for Further Upside

There is a trendline in the RSI connecting higher lows, reflecting solid momentum even during retracements. Presently, the RSI remains above this support line, showing space for further movement up. 

Additionally, a hidden bullish divergence on the RSI aligns with price behavior, while ETH made lower lows in mid-2023, the RSI set a higher low. This dynamic indicates strengthened momentum and hints at a potential price increase.

Bearish and Bullish Scenarios in the Market Setup

Ethereum’s market position offers both bullish and bearish scenarios. On the bullish side, breaking through resistance around $2,400 could open a path to $3,000 if momentum holds. However, failure to uphold current support would signal a possible downturn, with the price dropping toward $1,800 or below.

In the 4-hour ETH/USDT chart, key technical indicators reflect recent bearish pressure. ETH faces support at $2,400 after peaking near $2,700. The RSI, close to the oversold level, suggests that while selling has been strong, a bounce may occur if buyers return. The MACD, with a negative histogram, shows a bearish trend that could shift if the MACD line crosses above the signal line. Such movement would signify potential bullish momentum.