ETH Poised to Gain Momentum and Break Past $3K Resistance Level

This analysis focuses on the technical movements of Ether as observed by a market analysis expert.

Ether

appears ready to breach the $3,000 threshold as it develops an “ascending triangle” on its chart.

The ascending triangle is marked by a resistance line that remains horizontal, hindering upward movements, while a support line inclines upward.

For the past two weeks, Ether has encountered resistance at the $2,735 level repeatedly, coupled with higher reaction lows, which illustrates the formation of an ascending triangle.

This pattern of higher lows demonstrates increasing buying pressure, reinforcing the bullish sentiment associated with the ascending triangle. Essentially, this formation indicates accumulation and typically paves the way for further price increases.

A breakout from this ascending triangle could mark a return to the upward trend that began from April’s lows around $1,390, potentially allowing Ether to move past the $3,000 milestone.

The anticipated crossover of the 50-day simple moving average above the 100-day simple moving average further supports this bullish outlook.

This price action could be significant, especially given that the distance between the Bollinger Bands has contracted to roughly $250, a phenomenon that has historically indicated an imminent spike in volatility since November.

Bollinger Bands serve as volatility indicators positioned two standard deviations away from the cryptocurrency’s 20-day simple moving average.

A study indicates that upward breakouts occur approximately 77% of the time, and such breakouts happen around 61% of the distance from the base to the apex.

Conversely, a breakdown from the triangular formation would invalidate the bullish scenario, potentially triggering intensified selling pressure.