Ethereum (ETH) stands at a crucial turning point as it consolidates near $2,750. Technical analysis suggests a potential breakout could push prices toward the $3,000 mark. The second-largest cryptocurrency has maintained a tight trading range between $2,650 and $2,750 for the past week.
Technical Pattern Signals Bullish Potential
Crypto analyst Carl Runefelt has identified a symmetrical triangle pattern on ETH’s daily chart. This formation often precedes significant price movements. The pattern suggests a target of $3,055 if bulls can break through current resistance levels.
Key levels to watch include:
- Immediate resistance: $2,800
- 200-day Moving Average: $2,930
- Critical support: $2,600
Market Implications
A successful break above $2,800 could trigger renewed buying interest. The move would confirm a trend reversal and potentially attract sidelined investors. The 200-day Moving Average at $2,930 serves as the next major hurdle.
However, rejection at current levels might lead to a retest of support at $2,600. The market shows a clear division in sentiment. Some traders expect a deeper correction, while others anticipate a strong recovery.
Trading Volume and Momentum
Current trading volumes remain moderate, suggesting cautious positioning by market participants. Momentum indicators show neutral readings. This setup typically precedes a decisive move in either direction.
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Short-term Outlook
The next few daily closes will determine ETH’s direction. A decisive move above $2,800 could spark a rally toward $3,000. Traders should watch for increased volume to confirm the breakout.
The current setup presents a favorable risk-reward ratio for traders. Stop losses below $2,600 offer clear invalidation points for bullish positions.
Tags: Ethereum, ETH Price Analysis, Crypto Technical Analysis, Digital Assets, Trading
Source: NewsBTC