Reaccumulation Before Breakout?

Idea Summary:
Ethereum is currently in a consolidation phase after testing the $2,700–$2,750 zone. Using Fibonacci retracement and extension levels, I anticipate a potential bullish continuation pattern forming above key support zones, with eyes on higher targets.

🔍 Technical Analysis:
Current price: ~$2,540

Key Fib retracement levels:

0.786 – ~$2,347 → holding as immediate support

0.618 – ~$2,222

0.5 – ~$2,064

0.382 – ~$1,906

Resistance zone: ~$2,734 (Fib 1.0)

Main breakout target:

1.618 extension – $3,563

2.618 extension – $4,904 (longer-term projection)

Price action suggests a potential bullish structure forming – a possible inverse head & shoulders or ascending triangle pattern.

Bullish Scenario:
If ETH holds above $2,300–$2,350 and breaks above the $2,730 resistance, we could see a surge toward the $3,560 level (1.618 Fib extension), with the possibility of entering a parabolic leg toward $4,900+ in the longer run.

Bearish Scenario:
If ETH fails to hold above the 0.786 level ($2,347), the next downside supports are:

$2,222 (0.618)

$2,064 (0.5)
These levels could offer new long entries depending on reaction.

Conclusion:
Ethereum is forming a solid base for the next move. As long as bulls protect the $2,300 zone, the chart favors upside continuation. A break above $2,750 would confirm strength and may trigger a powerful bullish extension.