Ethereum price is on a roll to new all-time highs following a recent break above an ascending triangle pattern. As discussed on Thursday, establishing support above $2,400 was key to securing the uptrend to $2,500. At the time of writing, Ethereum teeters at $2,505 after making a tremendous milestone.
The daily chart illustrates the formation of an ascending triangle. This pattern forms in an uptrend and tends to signify continuation. The triangle brings to light a consolidation period before a breakout comes to life.
Two trend lines create an ascending triangle, connecting a series of equal peaks and sequential higher lows. A breakout comes into the picture when the price slices through the x-axis. Note that triangles are known to have exact breakout targets measured from the lowest to highest points.
For instance, following Ethereum’s break above the triangle, the uptrend has been moving toward the 34% target to $2,664. The primary goal at the moment is to secure higher support, preferably above $2,500. Support at this level would prove to the investors that the uptrend is intact and market stability has not been compromised. Besides, bulls will have the opportunity to focus not only on the triangle target but the rise to $3,000.
The Moving Average Convergence Divergence (MACD) indicator’s position affirms that the uptrend is intact. As the MACD moves higher within the positive region, the bullish grip strengthens.
On the flip side, closing the day under $2,500 may increase bearish pressure. Support at $2,400 might be tested, and if broken, Ether could spiral toward $2,000, marking the beginning of a significant correction.
Ethereum intraday levels
Spot rate: $2,500
Trend: Bullish
Volatility: Low
Support: $2,400 and $2,000
Resistance: $2,556
