Can Ethereum price rally past $2,400 as bullish metrics emerge?

Ethereum price has formed a strong support at $2,100 as whales continue accumulating the asset. Now, a bullish pattern on charts hints at more potential upside over the coming sessions.

According to data from crypto.news, Ethereum bulls managed to fend off a drop below the 100 support amidst some market correction on Sunday, arising from broader macroeconomic uncertainty.

The largest altcoin subsequently rallied over 3% to $2,170 as investor risk sentiment improved after the U.S. attempted to negotiate a temporary ceasefire with Iran through diplomatic channels, which saw crude oil slide back under $90.

Ethereum (ETH) price rebounded amid whale accumulation, which often sparks retail FOMO, who follow the smart money. Data from Santiment shows that whale wallets holding between 100 and 100,000 ETH bought over 750,000 ETH over the past 48 hours.

It also follows as Ethereum treasury company Bitmine continues to aggressively purchase more ETH as it nears its goal of owning at least 5% of the ETH supply, as earlier reported by crypto.news.

Another potential catalyst is the supply crunch. Notably, Ethereum exchange reserves have fallen to an all-time low of nearly 15 million. Depleting exchange reserves means investors could be moving assets to cold storage or staking them to earn passive rewards. Investors often see this as an incredibly bullish signal.

The Ethereum Foundation, the non-profit dedicated to the ecosystem, is also working to mitigate threats posed by quantum computing. Reports indicate that the new roadmap aims to transition the network to quantum-safe cryptography for centuries of security.

On the daily chart, Ethereum price has formed a giant cup and handle pattern, a popular bullish continuation pattern in technical analysis. A break above the neckline of the pattern confirms the setup, usually resulting in sustained upside over the following sessions.

In Ethereum’s case, the neckline of the pattern lies at $2,384. If bulls manage to breach through this level, ETH price could swing above $2,400 and much higher towards the psychological $3,000 mark as the measured move targets become active.

Technical indicators seem to suggest bulls still have plenty of gas in the tank. The Supertrend indicator has flashed green, a sign that the prevailing momentum has shifted in favor of the buyers, while the RSI has rebounded from neutral territory to suggest that there is still significant room for growth before the asset becomes overbought.