Following Tuesday’s lower than consensus U.S. consumer price index (CPI) print, Ethereum (ETH), along with the rest of the crypto market saw a mild gain. The second-largest cryptocurrency by market cap is up 6.97 percent from Monday’s low, signalling renewed interest in the digital asset.
Ethereum SuperTrend indicator suggests more upside
In a Tuesday X post, seasoned crypto analyst Ali Martinez highlighted that ETH is flashing a bullish SuperTrend indicator. The analyst shared the following ETH 3-day chart, adding that the last 2 instances this indicator turned bullish, ETH saw rallies to the tune of 72 percent, and 177 percent.
For the uninitiated, the SuperTrend is a trend-following indicator that uses price movement and the Average True Range to identify the prevailing market trend and dynamic support or resistance levels.
A buy signal occurs when the indicator flips below the price, suggesting a potential uptrend, while a sell signal occurs when it moves above the price, indicating a possible downtrend.
Fellow crypto analyst Moe shared the following ETH daily chart, showing how the digital asset has made the so-called “double cup pattern” 2 times over the past 2 years.
The first time was between February and May 2025, when ETH bottomed near $1,380-$1,400, and then went on to peak around $4,800 in late 2025.
The second cup is forming now. ETH bottomed near $1,380–$1,440 in July 2026, almost exactly mirroring the February-April 2025 low, and is now attempting to reclaim the same $1,780–$1,800 horizontal level.
If ETH manages to reclaim the highlighted price level, expect the digital asset to go on another parabolic rally that could propel it to a fresh all-time high.
Crypto trader Daan Crypto Trades shared a similar outlook. He emphasized that it is critical for ETH to reclaim the $1,850 price zone for it to have any hopes of a meaningful bullish reversal.
Is ETH hiding its weakness?
Although exchange liquidity data shows strong depth for ETH on Binance and other leading exchanges, some analysts opine that the bulls’ optimism may be unfounded, and that the possibility of a so-called ‘long squeeze’ is fairly high.
There are also signs that ETH is repeating a pattern that previously preceded a major 30 percent price pullback. That said, despite a possible capitulation event, ETH is likely to head to $2,000 in the short to medium-term.
