Ethereum Price Prediction: ETH hints at 36% breakout as indecision mounts
|- Ethereum price is consolidating inside a symmetrical triangle pattern, suggesting a 36% move.
- Transactional data shows that an upside move is likely due to the lack of resistance levels.
- Technicals hint at a bullish outlook only after a decisive close above $2,000.
The Ethereum price is trading inside a symmetrical triangle formation that has no inherent bias. Hence, a breakout could head either way.
Ethereum price remains undecided
The Ethereum price has been moving sideways for more than a month, creating lower highs and higher lows, leading to a symmetrical triangle pattern.
Although this type of technical pattern doesn’t have a bias for the trend’s direction, it forecasts a 36% price swing.
This target is determined by measuring the distance between the triangle’s pivot high and low, and adding it to the breakout point. A decisive close above $1,878 will signal the start of a new uptrend that could result in a 36% uptick to $2,563. However, if ETH slices through $1,588, it might trigger a 36% fall to $1,000.
ETH/USD 12-hour chart
Although unclear from a technical point of view, IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model suggests a bullish outlook due to the lack of resistance barriers ahead. Solidifying this is the stable support barriers present immediately below.
IOMAP cohorts reveal 490,000 addresses that purchased 12.05 million ETH are present around $1,723. Any short-term bearish spikes will be absorbed by investors in this area, resulting in a bounce.
Therefore, a decisive close above the setup’s upper trend line will kickstart a 36% bull rally. Regardless, a secondary confirmation will arrive after ETH slices through the Momentum Reversal Indicator’s breakout line at $2,000.
Ethereum IOMAP chart
A failure to surge past the upper trend line or rejection around MRI’s State Trend Resistance at $1,818 could lead to a pullback. If this move breaks below $1,588, it would invalidate the bullish outlook and trigger a bearish one.
In this case, the Ethereum price will first face MRI’s State Trend Support at $1,515. Following a breach of this level, ETH could find support at $1,427, coinciding with the 200 Simple Moving Average (SMA).
MRI’s breakout line at $1,300 will serve as a significant deterrent to the bearish momentum. If ETH for any unforeseen reason pierces this level, the symmetrical triangle’s downward target of $1,000 is likely to be attained.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.