Technical analysis by keyvankho about Symbol ETH: Buy recommendation (12/3/2024)

Ethereum’s price recently broke above the key resistance level at $3,800, completing the breakout from the Cup and Handle pattern. This breakout is a bullish signal, pointing to the potential for further upward momentum, with a target of $5,400.However, it’s normal for prices to pull back and retest the breakout level after such a move. This pullback serves two purposes: it tests whether the previous resistance at $3,800 can now act as support, and it helps the market consolidate before the next leg up.What to Watch For:Holding Above $3,800:If the price holds above $3,800 during this retest, it confirms the breakout as valid and sets the stage for further gains.A strong bounce from this level, especially with rising volume, is a sign of renewed bullish momentum.Key Support Level at $3,525:If the price falls below the handle low at $3,525, it would invalidate the pattern and could lead to further declines.Breakout Confirmation:For the next upward move to $5,400, buyers need to step in and push the price higher after this pullback.In conclusion, the pullback and retest of $3,800 is a typical and healthy part of the breakout process. If the level holds, the bullish target of $5,400 remains in play. As always, this is not financial advice. DYOR (Do Your Own Research) and manage your trades with caution.