The multi-month consolidation in the price of Ethereum (ETH) appears to be tightening. A breakout from the current sideways trend might start a strong rise to the upside.
The Ethereum price edges closer to a breakout.
Since June 2022, the price of ether has reached three almost equal highs and three higher lows. An ascending triangle configuration can be seen by joining these swing points with trend lines. A clear weekly candlestick closure above the triangle’s $2,000 horizontal resistance level will signal a breakout.
If that is the case, this technical pattern forecasts a 43% rally to $2,943 by dividing the distance between the initial swing high and low and the $2,000 breakout point.
The price of Ethereum is currently below the horizontal resistance level of the ascending triangle and above the $1,936 barrier level of the Momentum Reversal Indicator (MRI). It appears that ETH has turned the $1,936 barrier into a support floor.
The price of Ethereum should surge to $2,943 if the price of Bitcoin does not plummet dramatically in the coming weeks. However, resistance to this advance is probably going to come from the $2,539 barrier, which acted as a crucial support level in March 2022.
Although $2,943 is the theoretical aim, ETH may increase and reach $3,186, the next MRI resistance level. There would be a 60% gain from this strategy.
However, if the price of Ethereum is unable to maintain its above-ground position above the $1,936 support level, it may correct to the $1,795 support floor, where investors may attempt to buy the breakout once more.
However, this attempt will not succeed, and the price of Ethereum will make a lower low and refute the bullish thesis if it closes with a weekly candlestick close below $1,547. In that scenario, ETH might drop as low as $1,309.