Ethereum, one of the biggest rivals to Bitcoin, is flashing strong bullish signs of a breakout, with prices up 3.89% to $2,516.87. Bullish sentiment is surging to record highs! The cryptocurrency is currently creating an ascending triangle, a textbook pattern that almost always indicates a massive bullish breakout in the near future. Technical indicators and renewed investor optimism are fueling speculation that Ethereum might soon test the $2,700 resistance level.
ETH/USD joined the latest Ethereum price rally with an impressive price rebound at the $2,424 support area. Successful completion of the ascending triangle pattern, a widely-followed technical formation, indicates that a breakout above this ceiling — the $2,700 resistance level — is more likely than not. This kind of harp pattern has an upward sloping lower trend line coupled with a horizontal upper trend line. This structure indicates buildup and hints at a potential increase in demand pressure.
Augmenting this bullish outlook, Ethereum had a MACD bullish crossover back in July. Additionally, MACD bullish crossovers have historically been strongly indicative of upward price movements for Ethereum. This crossover is what completes the ascending triangle pattern, strengthening the case for an eventual breakout even more.
Even with the positive price action, Ethereum has seen a significant decrease in trading volume. As long as the lower support holds, this makes the potential breakout much more likely to be successful. Triple top or ascending triangle pattern just like MACD bullish crossovers. This potent mix signals that a major price breakthrough is likely to occur sooner rather than later, particularly given current market characteristics and increasing investor sentiment.
Ethereum's technical setup signals a breakout. The crypto’s recent rally is being propelled by a resurgence in investor sentiment.
