- Ethereum price consolidation has resulted in an ascending triangle setup.
- This technical formation forecasts a 45% upswing on the breakout of the $2,000 psychological level.
- A flip of the $1,639 support level will invalidate the bullish thesis for ETH.
Ethereum (ETH) price shows a tight consolidation on the three-day chart. As this rangebound movement nears a breakout, investors need to be extremely cautious of Bitcoin (BTC) bears, who could flip the plan on its head.
Also read: Ethereum Layer 2 Optimism beats MATIC to the curb, sees massive spike in active addresses
Ethereum price edges closer to a breakout
Ethereum price has shown resilience over the past few months as it hovered between the $1,000 and $2,000 psychological levels. During this time, ETH has set up nearly four equal highs and four higher lows.
Connecting these swing points using trend lines reveals an ascending triangle setup. This technical formation forecasts a 45% ascent on the breakout of the horizontal resistance at nearly $2,000. The target of $2,915 is obtained by adding the measured distance to the breakout point.
As Ethereum price gets squeezed at the triangle’s apex, a volatile breakout is to be expected from ETH holders. The upswing might be prematurely stopped at the $2,439 hurdle, which would amount to a total gain of nearly 28% from the current price at $1,908.
The Relative Strength Index, which has flipped above the mean line, the Awesome Oscillator and the Wave Trend indicators have remained bearish. Still, the Wave Trend indicator suggests that a bullish crossover could occur soon.
ETH/USDT 3-day chart
On the other hand, if Ethereum price produces a three-day candlestick close below the $1,639 support level, it will create a lower low and invalidate the bullish thesis for ETH. Such a development could see the altcoin revisit the $1,500 psychological level.
In a worse-case scenario, Ethereum price could slide as low as the $1,368 registered on March 8.
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
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.