Ethereum continues its bullish run as it breaks out of a potential ascending triangle. Such a pattern is characterized by the market building energy and pushing against a horizontal base. A break above resistance opens the gates for a new leg higher, with two possible targets.
One is the triangle’s measured move, typically the longest leg of the contracting triangle (i.e., the blue line in the chart below). Another is the move prior to the triangular pattern, projected from the horizontal base (i.e., the orange line).
The cryptocurrency market is on a bullish trend ever since PayPal announced that it accepts some cryptocurrencies on its online payments platform. Ethereum is one of those. From that moment on, Bitcoin more than tripled from $10,000 to over $35,000, and Ethereum performed even more.
Ethereum Technical Analysis
To trade this triangle, bulls must focus on the series of higher lows. If this is indeed an ascending triangle, the price should not break the rising series until the market reaches the triangle’s measured move. In this case, the measured move is close to $1,400.
Therefore, bulls may want to go on the long side with a stop loss at the previous higher low and a take profit at $1,400. At that point, aggressive traders may even target the measured move of a possible pennant.
Ethereum Price Forecast