- Ethereum price shows a breakdown from an ascending triangle formation, hinting at a potential correction.
- While the theoretical forecasts hint at a 45% crash, the recent breakdown suggests bears are in control.
- Ether’s open interest has surged by nearly 500 million in the last three days, suggesting a renewed interest.
Ethereum price action is at an interesting point, which could trigger a steep move in either direction. With Bitcoin’s boring consolidation, crypto traders have been waiting for a volatile move to emerge. The lack of volatility could be ending soon, especially for Ether, as the open interest rose by nearly 500 million in the last three days from $6.09 billion to $6.58 billion. When the breakout does occur, one cap is likely to get caught in the wrong direction, causing liquidations in the millions.
ETH open interest
Also read: Fundstrat's Tom Lee's Bitcoin target is $180,000 if SEC approves first spot BTC ETF in the US
Ethereum price action hints at a massive move soon
Ethereum price set up an ascending triangle formation between May 28, 2022, and August 14, 2023. This setup contains three higher lows and nearly three equal highs, which are connected using trend lines.
This technical formation is a bullish one and the confirmation of a breakout would occur if Ethereum price flipped the $1,998 or $2,000 psychological level into a support floor. The ascending triangle pattern forecasts a 45% upswing to $2,915, which is obtained by adding the distance between the first swing high and swing low to the breakout point.
On the contrary, Ethereum price breached the setup to the downside on August 13 and is on its way to confirming the breakdown by producing a three-day candlestick close below it. If this outlook does play out, instead of the 45% rally, ETH could crash by 45% and revisit the next key level at $998. But in some cases, ETH could stop around or above the $1,000 psychological level, which is not too far away from the theoretical target.
ETH/USDT 3-day chart
However, if Bitcoin’s consolidation breaches to the upside, bears that shorted ETH thinking a bearish breakdown has occurred would be trapped. In such a case, Ethereum price could quickly climb higher and flip the $2,000 psychological level. This development could confirm a bullish breakout, forecasting a 45% move to $2,915.
In bullish cases, Ethereum price could revisit the $3,000 level that has not been tagged since April 20222.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
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.
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.