• Ethereum price shows a breakdown from an ascending triangle formation, hinting at a potential correction.
  • While the theoretical forecasts hint at a 45% crash, the recent breakdown suggests bears are in control.
  • Ether’s open interest has surged by nearly 500 million in the last three days, suggesting a renewed interest.

Ethereum price action is at an interesting point, which could trigger a steep move in either direction. With Bitcoin’s boring consolidation, crypto traders have been waiting for a volatile move to emerge. The lack of volatility could be ending soon, especially for Ether, as the open interest rose by nearly 500 million in the last three days from $6.09 billion to $6.58 billion. When the breakout does occur, one cap is likely to get caught in the wrong direction, causing liquidations in the millions. 

ETH open interest 

ETH open interest 

Also read: Fundstrat's Tom Lee's Bitcoin target is $180,000 if SEC approves first spot BTC ETF in the US

Ethereum price action hints at a massive move soon

Ethereum price set up an ascending triangle formation between May 28, 2022, and August 14, 2023. This setup contains three higher lows and nearly three equal highs, which are connected using trend lines.

This technical formation is a bullish one and the confirmation of a breakout would occur if Ethereum price flipped the $1,998 or $2,000 psychological level into a support floor. The ascending triangle pattern forecasts a 45% upswing to $2,915, which is obtained by adding the distance between the first swing high and swing low to the breakout point. 

On the contrary, Ethereum price breached the setup to the downside on August 13 and is on its way to confirming the breakdown by producing a three-day candlestick close below it. If this outlook does play out, instead of the 45% rally, ETH could crash by 45% and revisit the next key level at $998. But in some cases, ETH could stop around or above the $1,000 psychological level, which is not too far away from the theoretical target.

Read more: Breaking: $1.7 million worth of Ethereum stuck in Shibarium bridge as launch fails to catalyze meme coin rally

ETH/USDT 3-day chart

ETH/USDT 3-day chart

However, if Bitcoin’s consolidation breaches to the upside, bears that shorted ETH thinking a bearish breakdown has occurred would be trapped. In such a case, Ethereum price could quickly climb higher and flip the $2,000 psychological level. This development could confirm a bullish breakout, forecasting a 45% move to $2,915.

In bullish cases, Ethereum price could revisit the $3,000 level that has not been tagged since April 20222.


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.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Solana congestion troubles could end soon, testnet v1.18.11 release arrives

Solana congestion troubles could end soon, testnet v1.18.11 release arrives

Solana network is plagued by failed transactions caused by congestion issues on the blockchain. The recent rise in popularity of Solana-based meme coins has resulted in a massive increase in user activity on the SOL blockchain, which has exacerbated the issue. 

More Solana News

Bitcoin meme coin PUPS hits new all-time high as Ordinals tokens see massive spike

Bitcoin meme coin PUPS hits new all-time high as Ordinals tokens see massive spike

Pups, a BTC-based meme coin, hit a new all-time high of $84.08 early on Friday. The Ordinals Inscription project, which was launched nearly a year ago, sees gains from anticipation surrounding Bitcoin halving.

More Bitcoin News

XRP price tests $0.60 support as AMM makes comeback on XRPLedger

XRP price tests $0.60 support as AMM makes comeback on XRPLedger

Ripple sees AMM back in action on the XRPLedger mainnet after amendment on Friday. XRP price tests $0.60 support, price ranges below $0.62 on April 12. Ripple CLO shared the Second Circuit Court of Appeals refusal to reconsider their decision, considered a loss for the SEC. 

More Ripple News

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Robert Kiyosaki, author of Rich Dad Poor Dad, is popular for his investment advice and pro-Bitcoin stance on social media platform X. Early on Friday, Kiyosaki shared his thoughts on Bitcoin ETFs and advocated holding the asset directly, instead of a “Wall Street” version. 

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. While Bitcoin’s long-term outlook remains positive, bouts of volatility could bring prices down ahead of the upcoming halving.

Read full analysis

BTC

ETH

XRP