Ethereum Retests Breakout Zone, Analyst Sets $3,500 Target
20 Dezembro 2023 - 1:30PM
NEWSBTC
An analyst has explained how Ethereum is retesting a breakout zone
currently and that this might lead toward a price target of $3,500.
Ethereum Is Retesting The Breakout Line Of An Ascending Triangle As
pointed out by analyst Ali in a new post on X, Ethereum may be
preparing for a further climb right now as it’s retesting the
breakout zone of an ascending triangle. An “ascending triangle” is
a pattern in technical analysis that, as its name implies,
resembles a triangle. The pattern involves a horizontal line made
by connecting highs and a slant line that strings together higher
lows. Related Reading: Dogecoin Whales Are On The Move: A Worrying
Sign? When the price retests the upper, horizontal level, it could
be probable to feel some resistance. On the other hand, a touch of
the lower level could lead to the price rebounding back up. A break
out of either of these lines suggests a potential sustained
continuation of the trend. Naturally, an escape out of the triangle
towards the upside implies bullish momentum, while a fall under
means bearish momentum. Like the ascending triangle, there is also
the “descending triangle,” which is a similar pattern except for
the fact that the two levels are switched around (as the prevailing
trend is towards the downside). Now, here is the chart shared by
Ali that displays how the price is interacting with an ascending
triangle right now: Looks like the asset's value has plunged back
towards the triangle in recent days | Source: @ali_charts on X As
is visible in the graph, Ethereum found a bottom at the lower line
of this ascending triangle pattern back in October. Following this
low, the asset turned itself around with a sharp rally and went on
to challenge the upper line. The cryptocurrency succeeded in
finding a break above the triangle and observed a continuation of
the bullish momentum, exploring new highs for the year. Recently,
though, the asset has slumped back again and has now fallen towards
the triangle’s breakout line. So far, the line has provided support
to the asset, as its price has been able to remain above it. The
analyst believes that this retest could be a sign that the coin is
preparing for a further rally. “The price range between $2,150 and
$1,900 could be the ideal zone for accumulation before ETH sets its
sights on a higher target of $3,500,” explains Ali. From the
current price, such a target would mean a rally of almost 60% for
the asset. Related Reading: Santiment Breaks Down “Most Trending”
Altcoins Of Past Week October, the month when Ethereum turned
itself around off the triangle’s slope, was also an inflection
point for the asset in terms of on-chain activity, as the analytics
firm Glassnode has explained in its latest weekly report. The trend
in three on-chain indicators for ETH | Source: Glassnode's The Week
Onchain - Week 51, 2023 From the chart, it’s visible that the
Ethereum transaction count and transfer volume have both been
trending up since the inflection point a couple of months back,
which could be bullish for the price. ETH Price Ethereum has gone a
bit stale recently as it has been consolidating around the $2,200
mark. The price of the coin appears to have been moving sideways
recently | Source: ETHUSD on TradingView Featured image from
Kanchanara on Unsplash.com, charts from TradingView.com,
Glassnode.com
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