The cryptocurrency market is regaining its “Uptober” momentum as Bitcoin prices surge towards $70,000. This renewed optimism has led analysts to predict Ethereum has bottomed out and could rally towards $4,000.

However, ETH is currently down 2.73% to $2,667 with a $322.2 billion market cap. The 72% spike in 24-hour trading volume indicates correction risks remain.

Crypto analyst McKenna shared a bullish outlook for Ethereum, highlighting a breakout from a symmetrical triangle pattern that has contained price action since August. This upside breakout signals ETH has likely bottomed and is poised for a major rally. McKenna emphasized $2,850 as a key level to watch for confirming bullish momentum.

“If Trump wins in November, not only does a trending market get established once again, but it accelerates beyond everyone’s expectations,” McKenna added.

A sustained breakout could drive ETH towards $3,600 and potentially $4,000.

However, on-chain metrics show some near-term risks. The 30-day MVRV ratio recently spiked above 6%, indicating short-term buyers are sitting on unrealized profits. This increases the possibility of profit-taking and a pullback, similar to price action seen last July and September.

ETH is currently retesting the triangle’s trendline as support. A daily close below the 100-day EMA and $2,650 could embolden bears to push prices 9% lower to $2,400.

Therefore, Ethereum must hold above $2,650 to maintain bullish momentum and reach upside targets. Traders should monitor this key support level closely in the days ahead.