Ethereum Price Prediction: ETH consolidation projects 40% gains

Ethereum price is forming an ascending triangle pattern, forecasting a 40% upswing to $4,100.
A decisive close above $2,916 will signal the start of the bull rally.
If ETH breaks past the support level at $2,275, it will invalidate the bullish thesis.

Ethereum price is forming a bullish consolidation pattern that hints at a rally toward the all-time highs. However, ETH must clear critical resistance levels present in between the current position and the target.

Ethereum price heads toward a bullish breakout

Ethereum price has set up three equal highs since May 20 while creating three lower lows. An ascending triangle pattern forms when these swing points are connected using trend lines.

This setup forecasts a 40% upswing to $4,100, determined by measuring the distance between the first swing high and low and adding it to the breakout point at $2,916.

Therefore, Ethereum price needs a decisive 4-hour candlestick close above $2,916 to signal a bullish breakout.

It is likely the lows at $2,527 will be swept before Ether moves higher. This downswing will either come after the horizontal resistance level is broken or before it. Either way, investors should expect the recent swing low to be swept before the bull rally manifests itself.

For the ETH to hit its intended target, it has to slice through the supply zone extending from $3,315 to $3,441.

ETH/USD 4-hour chart

If Ethereum price fails to surge past the initial supply zone, extending from $2,689 to $2,889, the upswing will be unconfirmed. Under these circumstances, if ETH shatters the support level at $2,275, it will invalidate the bullish outlook.

The second point of failure would be a breakout above $2,916, followed by an inability of the buyers to keep the smart contract token higher. If the resulting downward move slices through $22,75, ETH is likely to consolidate here or head to the demand zone present under it.

Share: Cryptos feed

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.