Amid the recent uncertainty in the crypto market, the Ethereum price has been in a tight consolidation for the past two weeks. During this period, the ETH price actively responded to a rising support trendline and horizontal resistance of $1838, revealing the formation of an ascending triangle pattern. With an intraday gain of 2%, ETH price has now breached the pattern’s neckline resistance, potentially accelerating buying pressure for further gains.
This bullish breakout from the $1838 resistance released Ethereum’s coin price from market choppiness. A bullish crossover from 20 and 50 EMA has the potential to attract more buying orders, as shown by the increase of the intraday trading volume to $6.77 billion, reflecting a 77% gain. In the 4-hour time chart, the Ethereum price reflects a massive breakout from local resistance of $1838, backed by high volume and indicating buyer commitment.
However, there are also hurdles to consider. The $1900 level is accompanied by a long-coming resistance trendline of a falling wedge pattern. This setup carries the current correction trend and has higher weightage than the triangle breakout. If sellers continue to defend the overhead trendline, ETH price could potentially plunge to lower levels.
A reversal could tumble the prices by 8% and reach the $1700 mark. Ethereum price will continue with its current correction phase until the wedge pattern of the daily chart is intact. A breakout from the resistance trendline of this pattern will be a key signal for any bullish growth in this altcoin, raising the possibility of prices surging beyond the $2000 mark.
The Average Directional Index offers additional confirmation that the ADX slope uptick, around 19%, projects strength in buyers, potentially pushing the price to $1900. Additionally, with today’s price jump, the Ethereum price has reclaimed 20, 50, 100, and 200 EMAs of the 4-hour chart, offering multiple support for buyers.
One must keep in mind that the presented content may include the personal opinion of the author and is subject to market conditions. Crypto enthusiasts should conduct thorough market research before investing in cryptocurrencies. Furthermore, the author or the publication does not hold any responsibility for personal financial loss incurred due to such investments.
Source: Coingape
