While Ethereum is counting the days for the big update, analysts are pointing to the cup-handle formation on the ETH-BTC chart. Analysts think that Ethereum has bullish potential in line with the technical data. Due to both the on-chain data and the trust the update has created in the ecosystem, there is an opinion that Ethereum (ETH) can go up to $ 2,000 again. Having hit its bottom on June 13, Ethereum started to gain steady momentum and recovered 40%. The ETH/BTC pair has reached a two-month high and analysts have observed a classic bullish pattern on the chart that predicts a long rally.

Cryptocurrency analyst Yashu Gola has been noting a cup-to-handle formation on the ETH/BTC chart since last week. This pattern occurs when an asset's chart begins with a U-shaped rebound, similar to a glass.

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The cup model, which can help in determining the direction in price analysis, bears fruit in the medium and long term. Veteran investor Tom Bulkowski argues that the cup and handle model has a 61% success rate in meeting the profit target.

While this important pattern is emerging in the ETH/BTC chart, there is also a decrease in ETH reserves between exchanges. It can be considered as another indicator of a possible rally in Ethereum. Based on data from crypto data platform Glassnode, the amount of Ethereum among exchanges has reached a four-year low. The total ETH held on exchanges remained below 20 million as of July 22. The amount of Ethereum between exchanges last reached this level in July 2018 and was 19.93 million.

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Investors are likely to pull ETH off exchanges in anticipation of "Merge", the move from PoW to PoS will be a key milestone in Ethereum's journey to lower transaction costs and higher scalability. Vitalik Buterin, co-founder of Ethereum, talks about the possibility of 100,000 transactions per second after "Merge".

FXStreet analysts have evaluated the Ethereum price trend and foresee a retest of the $2,000 level. The ETH/BTC price chart has revealed a bullish pattern and analysts believe a breakout in the altcoin is likely in the short term.