• Ethereum price continues to recover after over half of its gains have been wiped out from the May market crash. 
  • ETH appears to be trading within an ascending triangle, setting up a price structure that could indicate a 30% price surge.
  • The bullish thesis could only be unraveled if the cryptocurrency is able to sustain above the 50 twelve-hour moving average and manages to break above $2,936. 

Ethereum price has continued to make higher lows since its massive crash that sent the cryptocurrency to a swing low of $1,732, wiping out 60% of its gains. Although ETH is still in recovery, the current price structure indicates that Ethereum is ready for a breakout.

Ethereum price primed to breakout

Ethereum price has reclaimed almost 50% of its losses from its deep plunge under $2,000 on May 23. Speculation looms of ETH showing signs of capitulation as the network has seen a spike in exchange inflow.

According to behavioral analytics firm Santiment, it is not uncommon for large inflows of tokens sent to exchanges preceding rapid price growth. 

Ethereum Exchange Inflow

ETH exchange inflow

On the 12-hour chart, ETH appears to be forming an ascending triangle, forming a horizontal trend line drawn along the swing highs, and a rising trend line established by connecting the swing lows. 

Ascending triangles are considered to be a bullish formation that usually indicates accumulation. As the pattern develops, the volume contracts until a potential breakout occurs. 

The upside target of the pattern is calculated by measuring the widest distance of the pattern and adding it to the horizontal trend line. The measured move of a potential breakout for ETH is 30%, reaching $3,810. This Ethereum price point coincides with the 78.6% Fibonacci extension level, adding credence to the bullish thesis. 

The Bollinger Bands squeeze could also indicate that Ethereum is anticipating a large price move. 

Now, the 50 twelve-hour moving average acts as critical resistance for ETH, and a break above this level could galvanize investors’ interest, adding fuel for a potential rally. Failure to sustain above this price point could shift Ethereum price action to continue trading sideways

ETH bulls must also wait for an escape above the horizontal trend line at $2,936, and a spike in volume before a rally to the upside can be confirmed. 

ETH/USDt 12-hour chart

ETH/USDT 12-hour chart

Speculators must take note of the 200 twelve-hour moving average as this level is currently acting as critical support for ETH, as it correlates with the ascending trend line that forms the triangle. A break below this line of defense could see Ethereum free fall to below $2,000 once again, dipping to its demand barrier, ranging from $1,732 to $1,939.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high

Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines. 

More Cryptocurrencies News
TON set to launch synthetic Bitcoin to boost its DeFi solutions

TON set to launch synthetic Bitcoin to boost its DeFi solutions

TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.

More Ton News
Maker Price Forecast: MKR could stage 40% rally

Maker Price Forecast: MKR could stage 40% rally

MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.

More MakerDAO News
USDT market cap crosses $120 billion as stablecoins continue their uptrend

USDT market cap crosses $120 billion as stablecoins continue their uptrend

The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.

More USDT News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP