A technical analysis said Ethereum could open a path to gains up to $2,163 after breaking above the key resistance level of $1,842. It also warned the move could end as a “bull trap” if the weekly close slips back below $1,842.

According to blockchain outlet U.Today on July 19 local time, cryptocurrency analyst Axel Kibar (악셀 키바르) presented the scenario, interpreting Ethereum’s recent moves as a double-bottom pattern.

The key is whether $1,842 holds. Ethereum confirmed support near $1,510 twice in June and July and then rebounded, later breaking above $1,842, cited as the pattern’s neckline. The price is currently around $1,870, and the market is testing whether it can turn $1,842, which had been resistance until the previous day, into support.

If it holds above $1,842, the next junction is $2,000. Kibar saw that if it clears that area, Ethereum could head toward its main technical target of $2,163. If the weekly close forms again below $1,842, the breakout’s validity weakens and the likelihood increases that the price returns to its previous range. In that case, the risk of retesting lower support also remains.

Some in the market see the current zone as a chance to buy at lower prices, but Kibar kept a cautious stance. He said he views the move as a local breakout and will not buy until Ethereum firmly establishes itself above $2,000. He judged the current rise could be part of a larger bottoming process.

He also judged that even if it means missing some of the gains, it is better to enter after the asset shows sustained strength and the broader structure improves. Buying below the annual average price carries the risk of funds being tied up in a prolonged and hard-to-predict sideways market, he explained.

In particular, $1,842 is seen as a benchmark that decides the success or failure of this double-bottom pattern, beyond a simple short-term resistance line. The longer the price stays above this zone, the more the breakout’s credibility can rise. If it quickly slips back, it is likely to be taken as a signal that buying interest was not sufficient.

$2,000 is also a psychological resistance level, making it a zone that is not easy to break in one move. The case for further gains toward $2,163 could strengthen only if Ethereum not only rises above $2,000 but also shows a move that turns it into support. If selling pressure again pours out near $2,000, short-term upside momentum could slow.

As a result, an analysis said the question of whether it can settle at key price levels matters more than the size of the current rebound. Expectations for a trend reversal could grow if a defense of $1,842 and a break above $2,000 are confirmed in sequence, and it was suggested that if either fails, Ethereum could again remain in a broad sideways range.

$ETHUSD Re-test completed? pic.twitter.com/0OIj7uvNKe