Ethereum (ETH) is showing signs of a potential rebound despite recently trading below $2,600. According to crypto analyst Cas Abbe, ETH is attempting to reclaim a pivotal Gaussian Channel, a technical setup that has historically preceded significant price spikes. This pattern has occurred twice since the 2020 market cycle, leading to substantial rallies.
The first instance saw ETH surge from $300 to $4,000, marking a 1,300% increase. In 2024, a similar reclamation of the channel resulted in a near 100% price increase, from $2,400 to $4,100. If ETH reclaims this channel for a third time, Abbe predicts a potential rise to $4,000 by Q3 2025.
Adding to the bullish outlook, crypto investor Ted Pillows reported a surge in daily contract deployments on the Ethereum network. This on-chain activity has reached its highest level since the 2021 bull market, signaling renewed momentum and innovation. Pillows believes that this growing fundamental strength could drive ETH's price to $10,000 before the end of the current cycle.
Despite current selling pressure, these indicators suggest a potentially significant upward trend for Ethereum in the coming months. The combination of technical patterns and increased on-chain activity paints a positive picture for ETH's future performance.
This article is based on our author's analysis of materials taken from the following resource: Trusted Editorial content.