Is Ethereum’s Monthly Reversal Candle Signaling a $2,700 Rally?

Ethereum's monthly chart shows a strong reversal, signaling a potential bounce.

Ethereum’s short-term rally target is projected between $2,500–$2,700.

ETH's price structure suggests a bullish continuation above key resistance.

Ethereum’s monthly chart has printed a strong reversal, suggesting the downtrend may have reached a temporary low. Technical levels show price holding a key mid-channel support, triggering expectations of a short- to mid-term bounce.

Reversal Candle Signals Bounce Potential

Ethereum’s macro structure shows a descending broadening channel formed since its 2021 peak near $4,860. The pattern reflects a three-phase correction, with projected cycle lows due by 2026. This layout outlines a clear roadmap for Ethereum’s broader trajectory over the next 18 months.

A large bullish monthly candle emerged after sweeping the August to October 2023 lows. This triggered technical interest from CryptoBullet, who has provided additional insights into the evolving structure. According to him, Ethereum held the midline of the macro channel and formed a bullish candle in April.

Source: CryptoBullet

He emphasized that while this bounce may not signal the end of the macro correction, it opens room for a relief rally. His near-term target lies between $2,500 and $2,700, with a broader rejection zone projected between $2,700 and $3,200. The analyst also pointed out that breaking through this resistance zone is essential to confirm a long-term bullish breakout.

CryptoBullet expects this bounce to develop over the coming months. However, he remains cautious about cycle timing, noting there are only seven months left in the current cycle. Given Ethereum’s relatively weak performance this cycle, he leans toward a dead cat bounce rather than a breakout to new all-time highs.

Long-Term Structure Supports Accumulation Zones

The second analyst, CryptoELITES, has presented a comparative analysis focusing on price structure and historical reaction points. He examined Ethereum’s long-term behavior using trendlines and support confluences, highlighting demand zones with consistent recovery reactions.

The analyst noted that Ethereum bounced from a support confluence near $270–$300 in previous macro corrections. Each touch of the rising trendline has triggered upward movement, indicating sustained structural integrity and investor demand. The chart shows Ethereum at $1,840, positioning just above a key breakout level with a steep projection toward $2,500.

Source: CryptoELITES

CryptoELITES marked this area as historically associated with altcoin rallies. The price has previously reversed sharply from these levels, suggesting a shift in momentum. The intersection of horizontal support and diagonal trendlines has consistently sparked medium-term recoveries.

His chart lacks indicators and volume, focusing entirely on candlestick behavior and trendline reactions. Ethereum’s movement fits historical recovery patterns seen during previous altcoin seasons. The structure confirms a bullish continuation, pending confirmation above major resistance bands.

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