Ethereum price prediction: Breakout above $3,170 sets stage for extended rally
Ethereum extends rally to $3,172 after confirming bullish breakout from daily cup and handle pattern
Ethereum extended its July rally on Tuesday, trading around $3,172, marking a 6.7% weekly gain and decisively breaking past a key Fibonacci resistance. The reclaim of the 0.618 retracement level at $3,067 has shifted the market tone decisively bullish, with traders now eyeing the 0.786 Fib at $3,524 and the previous cycle high near $4,106.
Highlights
- Ethereum breaks above $3,170 with a 6.7% weekly gain and confirms cup and handle breakout
- Derivatives volume up 32.85% as long positions dominate and shorts face $86M in liquidations
- Technical targets point to $3,800–$3,900 if price holds above $3,067 neckline zone
A confirmed breakout from a cup and handle formation on the daily chart has reinforced bullish conviction, suggesting a technical target around $3,800–$3,900.
ETH price forecast (Source: TradingView)
Ethereum’s uptrend is underpinned by a robust long-term structure. The multi-year ascending trendline from 2022 remains intact, and the neckline of the cup and handle formation between $3,050 and $3,100, has been cleared with strong volume and momentum. As long as the asset holds above this zone on any retest, the breakout structure remains valid, with momentum favoring a continued rally.
Derivatives data supports trend continuation
Futures and options flows confirm rising speculative interest. Total derivatives volume surged 32.85% to $126.19 billion, with open interest up 6.81%, indicating a rise in directional long positioning. Options volume also climbed 4.56%, with top trader long/short ratios notably bullish. On Binance, positions favor longs by a ratio of 2.14x.
However, the recent wipeout of $86.27 million in short liquidations, compared to $34.66 million in longs, raises the possibility of overly aggressive long positioning. That said, the funding rate at 0.0099% remains modest, showing that bullish exposure is building without triggering extreme leverage imbalances.
Key levels and market outlook
Immediate support now lies at $3,067, while the next resistance to monitor is $3,524. A successful break above that level could set the stage for a push toward $3,800–$3,900, completing the technical projection from the recent breakout. Should price fall below $3,067, a retest of the $2,745 confluence zone may follow.
In earlier coverage, we highlighted the importance of Ethereum holding above $3,000 to maintain bullish momentum. That threshold has not only held but has now given way to a cup and handle breakout, confirming our outlook for a possible expansion toward the $3,500–$3,900 zone if momentum sustains.
