- Ethereum price consolidates on the weekly chart inside an ascending triangle.
- A successful breakout from this setup forecasts a 43% upswing to $2,943.
- But ETH could rally ahead and tag the MRI’s resistance level of $3,186.
Ethereum (ETH) price shows a tightening of the multi-month consolidation. A breakout from this sideways movement could trigger a volatile move to the upside.
Also read: Ethereum is a commodity, but SEC will not admit it, expert says amid ongoing ETF race
Ethereum price edges closer to breakout
Ethereum price has set up three higher lows and three roughly equal highs since June 2022. Connecting these swing points using trend lines, reveals an ascending triangle setup. A decisive weekly candlestick close above the triangle’s horizontal resistance level at $2,000 will signal a breakout.
In such a case, this technical formation forecasts a 43% rally to $2,943, obtained by measuring the distance between the first swing high and swing low to the breakout point of $2,000.
Currently, Ethereum price sits above the Momentum Reversal Indicator’s (MRI) resistance level of $1,936 and below the ascending triangle’s horizontal resistance level. From the looks of it, ETH seems to have flipped the $1,936 hurdle into a support floor.
If Bitcoin price does not crash wildly in the upcoming weeks, Ethereum price is set to break out and kickstart an upswing to $2,943. But this move is likely to face resistance around the $2,539 hurdle, which served as a critical support level in March 2022.
While $2,943 is the theoretical target, ETH could rise higher and tag the next MRI resistance level of $3,186. This move would constitute a 60% gain.
ETH/USDT 1-week chart
On the other hand, if Ethereum price fails to stay above the $1,936 support level, it could trigger a correction down to the $1,795 support floor, where buyers could give the breakout another go.
But if this attempt fails and Ethereum price produces a weekly candlestick close below $1,547, it will create a lower low and invalidate the bullish thesis. In such a case, ETH could slide as low as $1,309.
Also read: BlackRock’s spot Ethereum ETF filing fails to catalyze ETH price sustained rally
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto analyst says Bitcoin bottom is very close, another correction in BTC likely
Bitcoin is trading above $67,000 on Sunday after securing support at $65,000. While BTC holds its gains steady, analysts evaluate the price trend of the largest asset by market capitalization and predict a deeper correction in Bitcoin.
AI tokens could really ahead of Nvidia earnings
Amidst other narratives, AI tokens could gather momentum with the upcoming earnings result of NVIDIA next week. The $2.3 trillion company’s stock emerged as a poster child for the crypto AI sector and gains in the stock catalyzed a rally in cryptocurrency tokens.
Whale rotates capital from WIF to TREMP and BONK, Solana meme coins make comeback
Lookonchain identified a large wallet investor who rotated capital from Solana based meme coin Dogwifhat to Doland Tremp and Bonk. The two meme coins have added double-digit value to their prices in the past 24 hours, as seen on CoinGecko.
Crypto political donations surge to $94 million pre election, exceed previous elections by 13%
Crypto industry giants supported political campaigns in the US looking for pro-crypto governance in the US. A Bloomberg report from May 17 shows that crypto donors have spent $94 million in an effort to get pro-crypto regulation in the US.
Bitcoin: Is BTC out of the woods? Premium
Bitcoin (BTC) price action in the past two days has confirmed the resumption of the bull run. However, BTC needs to clear a few key hurdles before investors can go all-in.