The Ethereum coin has been exhibiting uncertain market trends and a continued sideways movement within a narrow range. There is no apparent direction at the moment, making it difficult to predict which force might dominate the market and affect future trends. Nonetheless, examining the altcoin price on a shorter time frame suggests the formation of an ascending triangle pattern, which traders can use to identify potential entry opportunities in ETH.
As per the current situation, the Ethereum price hovers at around $1810 and displays indecisive price fluctuations on the daily chart. Despite the presence of broader market choppiness, ETH price is responsive to the rising trendline and the horizontal resistance of $1838, which together project the ascending triangle formation. For this pattern, the most common scenario is a bullish breakout from the horizontal neckline resistance, potentially raising the price by about 3% to immediately challenge the resistance trendline of the wedge pattern.
This particular chart pattern governs the ongoing correction in Ethereum’s price, so its completion is crucial for buyers who hope to initiate a new recovery rally. If the recovery occurs, it could drive the ETH price towards the last swing high. On the other hand, if there is a breakdown below the triangle support, the retracement phase will likely be extended for several more trading days.
The Moving Average Convergence Divergence (MACD) indicator suggests that a potential bullish crossover between the MACD (blue) and the signal (orange) line could encourage buyers to challenge the resistance trendline. Meanwhile, the Bollinger Band indicator’s lower band is still extending downward, implying that the selling momentum remains active.
For Ethereum’s price to reach the target of $2000, it requires a 10% growth within the remaining days of May. Although this level of price increase is possible in this time frame, the existing market uncertainty significantly compromises these chances. As a result, coin holders should wait for a significant signal, such as a wedge pattern breakout, before anticipating the $2000 target.
It is important to note that the presented analysis is based on the author’s personal opinion and is subject to market conditions. Performing extensive market research is vital before investing in cryptocurrencies, as neither the author nor the publication holds any responsibility for personal financial losses.
Source: Coingape
