Ether (ETH) Gearing Up for a New Test of All-Time Highs
As the cryptocurrency Ethereum is currently trading around $2,600, technical analysis reveals the formation of an “ascending triangle” pattern, often considered a precursor to a price increase. If this pattern confirms, Ether could well surpass the symbolic threshold of $3,000 in the coming weeks.
For several weeks, Ether has been facing resistance around $2,735. However, successive lows have rebounded, forming a technical pattern characteristic of the “ascending triangle”. This setup is generally interpreted as an accumulation signal, signaling the next bullish phase.
“The higher lows indicate increasing buying pressure, which is the very nature of an ascending triangle,” explains Omkar Godbole, a technical analyst at CoinDesk. “A bullish breakout from this pattern could reignite the rally started in April, with a potential to reach $3,000.”
Besides the ascending triangle, other technical indicators reinforce the bullish scenario for Ether. The 50-day Simple Moving Average (SMA) is on the verge of crossing the 100-day SMA, a crossover often seen as a buy signal.
Furthermore, the recent tightening of the Bollinger Bands, with a gap of nearly $250, hints at a potential explosion in volatility, a phenomenon that has been regularly observed since last November.
Crucial Weeks Ahead for Ethereum
In conclusion, technical analysis suggests }strong upward potential for Ether in the coming weeks. The formation of an ascending triangle, coupled with encouraging technical signals, hints at a breakthrough of the $3,000 level in the short term.
However, as highlighted by Killa and Tony the Bull, Ethereum is facing a massive bullish trendline over 3 years old at $2,700.
Even though a rise towards around $3,000 is highly probable in the short term, Ethereum must above all maintain above this trendline to sustain hopes of further upward movement.
Otherwise, ETH will return to the demand zone at $1,800-$1,900 in the coming weeks before bouncing back strongly. Additionally, ETH shows a bearish divergence in the daily RSI, strengthening the perspective of a retracement before a rebound in the coming months towards a new ATH.
