The cryptocurrency market is once again leaning lower after showing early signs of recovery on Monday that took Ethereum (ETH) to a high of $4,292, before sliding back to around $4,100, marking a 3% intraday decline.
However, beneath this short‑term weakness, ETH’s latest chart structure is showing an encouraging sign — a potential bullish reversal pattern that could set the stage for a stronger move ahead.
Bump-and-Run Reversal (BARR) Pattern in Play
On the 1‑hour chart, Ethereum appears to be forming a Bump-and-Run Reversal (BARR) pattern — a rare but powerful setup that often indicates the end of a bearish trend and the beginning of a new upward phase.
The Lead‑in Phase began after ETH faced rejection from its descending resistance line near $4,841, triggering a decline that eventually bottomed out at $3,426, forming the Bump Phase. From that low, the price rebounded sharply, breaking through the long‑standing downtrend resistance before pulling back for a throwback retest — a typical move that validates the breakout strength.
At the time of writing, ETH trades above $4,100, holding just above its 100‑hour moving average (MA) at $4,044, which has emerged as a key dynamic support area. This zone remains crucial for sustaining the bullish setup.
What’s Next for ETH?
If ETH maintains support above the 100‑hour MA and successfully reclaims the 200‑hour MA near $4,283, it could enter the Uphill Run Phase of the BARR pattern — the stage often associated with accelerated upside momentum.
Technical projections suggest that this move could propel ETH toward the $4,931 region, implying a potential 18% gain from current levels if momentum continues to build.
However, a breakdown below the 100‑hour MA could temporarily delay the bullish scenario, potentially leading to a short‑term retest of lower supports. Still, as long as the overall BARR structure remains intact, the broader bias leans toward the upside.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.