An analyst has explained how Ethereum is retesting a breakout zone currently and that this might lead toward a price target of $3,500.<\/p>\n
As pointed out by analyst Ali in a new post<\/a> on X, Ethereum may be preparing for a further climb right now as it\u2019s retesting the breakout zone of an ascending triangle.<\/p>\n An \u201cascending triangle<\/a>\u201d 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n Like the ascending triangle, there is also the \u201cdescending triangle<\/a>,\u201d which is a similar pattern except for the fact that the two levels are switched around (as the prevailing trend is towards the downside).<\/p>\n Now, here is the chart shared by Ali that displays how the price is interacting with an ascending triangle right now:<\/p>\n\n 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.<\/p>\n 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\u2019s breakout line.<\/p>\n 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.<\/p>\n \u201cThe 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,\u201d explains Ali. From the current price, such a target would mean a rally of almost 60% for the asset.<\/p>\n October, the month when Ethereum turned itself around off the triangle\u2019s slope, was also an inflection point for the asset in terms of on-chain activity, as the analytics firm Glassnode<\/a> has explained in its latest weekly report.<\/p>\n\n From the chart, it\u2019s visible that the Ethereum transaction count and transfer volume<\/a> have both been trending up since the inflection point a couple of months back, which could be bullish for the price.<\/p>\n Ethereum has gone a bit stale recently as it has been consolidating around the $2,200 mark.<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n An analyst has explained how Ethereum is retesting a breakout zone currently and that this might lead toward a price target of $3,500.<\/p>\n As pointed out by analyst Ali in a new post<\/a> on X, Ethereum may be preparing for a further climb right now as it\u2019s retesting the breakout zone of an ascending triangle.<\/p>\n An \u201cascending triangle<\/a>\u201d 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n Like the ascending triangle, there is also the \u201cdescending triangle<\/a>,\u201d which is a similar pattern except for the fact that the two levels are switched around (as the prevailing trend is towards the downside).<\/p>\n Now, here is the chart shared by Ali that displays how the price is interacting with an ascending triangle right now:<\/p>\n 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.<\/p>\n 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\u2019s breakout line.<\/p>\n 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.<\/p>\n \u201cThe 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,\u201d explains Ali. From the current price, such a target would mean a rally of almost 60% for the asset.<\/p>\n October, the month when Ethereum turned itself around off the triangle\u2019s slope, was also an inflection point for the asset in terms of on-chain activity, as the analytics firm Glassnode<\/a> has explained in its latest weekly report.<\/p>\nETH Price<\/h2>\n
Ethereum Is Retesting The Breakout Line Of An Ascending Triangle<\/h2>\n