Ethereum has recently experienced a breakout above $2,800 after trading between a support level of $2,366 and a resistance level of $2,734 since early May.

If Ethereum can maintain its position above $2,750 and successfully breach $2,830, it could trigger a significant shift in market sentiment, potentially igniting the next phase of the bull cycle.

However, despite recent bullish indicators, Ethereum has faced a 9.6% decline in the past 24 hours, highlighting the volatility and uncertainty in the market.

This decline follows a recent surge that generated market optimism, but global uncertainties and macroeconomic pressures have led to a pullback.

Technical analyst Gert van Lagen has identified an inverse Head and Shoulders bottom formation on Ethereum's two-week candlestick chart, which could indicate a bullish trend.

The formation includes a left shoulder from mid-2021 when Ethereum peaked at $4,870, a head formed during the bear market from late 2022 to early 2023, and a right shoulder currently forming in 2025.

The neckline of this inverse Head and Shoulders pattern is just below the crucial $4,200 resistance level, which is essential for a bullish breakout.

Crypto strategist Crypto Patel has analyzed Ethereum's price movement, predicting a potential rally to $4,000 based on an 8-hour chart, with a long-term target suggesting it could reach $10,000.

If Ethereum breaks above the $4,200 level, van Lagen predicts a price target of approximately $19,500, representing over a 600% increase from current levels.

The recent increase in Ethereum's price is attributed to bullish momentum from Bitcoin, indicating potential for a larger rally in the cryptocurrency market.

As Ethereum remains above the 50 and 100 simple moving averages, its bullish structure is intact, although decreasing volume suggests traders are anticipating a decisive move soon.

On the downside, failing to hold above $2,700 may lead to a drop towards the 200 simple moving average at approximately $2,570.