Ethereum (ETH) is gearing up for a bullish breakout from an ascending triangle pattern, targeting $3,760. Breaking the $2,800 resistance is crucial to confirm this rally. Stay ahead with analysis and insights to predict price action!
Ethereum (ETH) is on the verge of a significant bullish breakthrough as the market focuses on the asset’s dynamics within a promising chart pattern.
Ethereum is currently trading within an ascending triangle, a pattern commonly viewed as bullish due to its structure of rising lows under a horizontal resistance. This consolidation suggests that a major breakout is imminent, especially as the price nears the formation’s apex. With a key resistance at $2,800 and a bullish momentum building up, the next directional move could be significant.
Ascending triangles are known to produce powerful breakouts when confirmed with increased volume. In Ethereum’s case, the pattern remains technically sound, with a consistent series of higher lows indicating buyer aggression and structural strength. The $2,800 resistance level marks the final significant hurdle before ETH can surge towards a higher value zone.
A confirmed breakout above this structure suggests a continuation move, with a projected target of $3,760, calculated by adding the triangle’s height to the breakout level. This target also aligns with a historical resistance zone and a high volume node on the chart. Before that, the $3,300 resistance, corresponding to the 2-day POC, will be another challenge for ETH to overcome.
If ETH manages to break these resistance levels, it could target $5,200 to $5,700 in the following months, according to the Mean Reversion Channel.
As long as Ethereum remains inside the ascending triangle and continues to form higher lows, the likelihood of a bullish breakout increases. Traders will need to closely monitor the $2,800 resistance level. A decisive breakthrough with an expansion in volume could propel ETH towards the target of $3,760.
However, sometimes these triangles are broken to the downside before heading higher.
Buyer weakness and decreasing Woodies CCI indicate that ETH could face choppy waters in the coming days.
If ETH breaks its support at $2,460, it will likely target the zone around $2,100 to $2,000 in the following days. Therefore, closely monitoring ETH in the upcoming days is crucial. A drop below the triangle is not necessarily a bad sign, as it allows for a long overdue liquidation of latecomers and accumulation by whales. This acts as a kind of “reset” to gather new momentum.
The bullish potential of Ethereum is undeniable in the medium to long term, emphasizing the importance of closely monitoring key levels to anticipate short-term market movements and capitalize on opportunities.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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