HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Bullish Continuation Pattern on Ethereum Predicts Price Over $1,500

Altcoins 2021/01/06 12:50 by Yashu Gola

Ethereum has the potential to extend its ongoing upside move towards or above $1,500.

The second-largest cryptocurrency broke above a consolidation price channel on Wednesday, breaking its upper trendline on surging volumes. So it appears, the channel is an Ascending Triangle that traders perceive as a bullish continuation indicator.

An Ascending Triangle structure develops when an asset fluctuates between a horizontal resistance line to form swing highs and a rising trendline to form swing lows.

Therefore, if the asset trades upward before forming the said structure, its potential for continuing the trend higher increases following a breakout move through the horizontal line; Typically, the breakout target lurks near the level at a distance equal to the length of the previous uptrend move, otherwise known as “Flagpole.”

The Ascending Triangle Setup

Ethereum formed a similar structure following its explosive move from $757 to $1,169. The Triangle pattern established a horizontal resistance line near $1,127. The ETH/USD exchange rate broke the level to the upside during the European session Wednesday, reaching an intraday high of $1,170.

Ethereum, ETHUSD, ETHBTC, ETHUSDT, cryptocurrencyEthereum enters the resistance range with a history of undergoing sell-offs. Source: ETHUSD on TradingView.com
Ethereum enters the resistance range with a history of undergoing sell-offs. Source: ETHUSD on TradingView.com

The price entered the colored region, as shown in the chart above. It held the history of sending ETH/USD lower due to higher selling sentiment. So it appears, traders with a short-term outlook profited from the pair’s intraday top on Wednesday as well. Nevertheless, the price remained above the horizontal line, signaling its potential to extend its breakout move upward.

Ethereum to $1,500

A further break above Ethereum’s session high of $1,168 could prompt traders to eye the Ascending Channel’s breakout target. The flagpole height before the pattern’s formation is around $395. That roughly puts ETH/USD en route to over $1,500.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDTBitcoin and Ethereum trade volumes near best single-day peaks. Source: itBit
Bitcoin and Ethereum trade volumes near best single-day peaks. Source: itBit

More evidence of a potential Ethereum rally comes from its retail demand. Nugget News Founder Alex Saunders shared a single-day Bitcoin and Ethereum volume chart sourced from itBit, a digital asset platform owned by PayPal’s crypto services provider Paxos. He said:

“Retail demand is absolutely sky rocketing for BTC and ETH with on track to smash their highest single-day volume of $110M. The general public is catching the magic internet money bug, just as a wave of institutional money has begun pouring in.”

0 Like(s)



You should also read...

Bitcoin 12/06/20 13:00 by Yashu Gola
70% Chance Bitcoin Reclaims $11.8K by July 2020; Here’s Why
Bitcoin rallied Friday, reversing a minor portion of its losses incurred during the yesterday’s sell-off. The cryptocurrency retraced upward from a convincing support trendline. It now appears ...
Read More
Altcoins 17/09/20 15:00 by Yashu Gola
Ethereum Risks Plunging Towards $350 Following Rejected Spikes
A string of back-to-back upside rejections at a local top is putting Ethereum at risk of correcting lower towards $350. Looking at ETH/USD 1H chart shows the pair attempting to close above $384, a res...
Read More
Altcoins 05/11/20 12:36 by Yashu Gola
3 Primary Reasons Why Ethereum (ETH) Could Hit $500 in Q4
A confluence of bullish fundamental and technical indicators sees Ethereum rallying upward towards $500 in the fourth quarter. The second-largest blockchain asset by market capitalization has rallied ...
Read More
Altcoins 07/12/20 12:18 by Yashu Gola
Ethereum Expects to Hit $750 as Price Holds Key Technical Support
Ethereum blockchain native’s token ETH expects to reach $750 in the fourth quarter as it holds above a crucial technical support level. On Monday, the ETH/USD exchange rate attempted to breach a...
Read More
Altcoins 04/02/21 14:33 by Yashu Gola
Ethereum Triangle Breakout Shifts Price Target to Over $2,000
Ethereum achieved a new milestone this Thursday as its price almost touched $1,700 for the first time in history. The ETH/USD exchange rate hit $1,699 on the Coinbase exchange after rallying 29.79 per...
Read More