Ethereum pulled back from its weekend high of $4,766, slipping about 6% as traders took risk off the table before the Fed’s rate decision. Yet despite the dip, ETH has so far held its 20-day exponential moving average near $4,450. This resilience is being watched because markets are now pricing in a 96% chance of a cut this week, with two more likely before year-end.
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For Ethereum, a dovish Fed could restore confidence to risk assets and add fuel to crypto markets just as ETH trades within a bullish chart formation. The setup suggests that if momentum returns quickly, Ethereum could be primed for another leg higher.
Ethereum Forms Bull Pennant Pattern
On the daily chart, ETH has carved out what technical traders call a bull pennant. The pattern has formed on declining volumes, which is often seen as a healthy sign of consolidation before a breakout. If ETH breaks through the upper trendline with conviction, chart projections point toward a target near $6,750, roughly 45% above current levels.
Analysts including James Harris of Tesseract and Donald Dean have floated similar upside scenarios. The thinking is that if liquidity returns and Ethereum clears resistance, the size of the prior rally implies there’s still significant room for price expansion.
Ethereum Faces Risk of Deeper Pullback
Not everyone is convinced that the breakout is imminent. If ETH fails to hold its 20-day EMA, bears may press the price toward $4,350, the lower edge of the triangle, or even $4,200, where the 50-day EMA sits. Those levels represent the next lines of defense before a more decisive sell-off could unfold.
That said, analysts largely see such pullbacks as buying opportunities rather than the start of a bearish reversal. Chartist Ash Crypto argued that even a dip below the pennant would likely be followed by a push back above $5,000 in the coming weeks, underscoring that the broader trend remains intact.
Ethereum Creates Key “Golden Pocket” Setup
Perhaps the most closely watched level now is what traders call the golden pocket, a Fibonacci retracement zone around $4,300–$4,500. Ethereum has managed to reclaim this range, which also aligns with its daily Bull Market Support Band. Analyst Luca described this alignment as a textbook “Breakout → Retest” formation.
“As long as the price holds above the golden pocket,” Luca said, “the most likely outcome is further upside.” In other words, Ethereum does not need to surge immediately; simply holding this level could be enough to set the scene for another breakout attempt in the weeks ahead.
At the time of writing, ETH is sitting at $4,445.63.
