Ethereum (ETH) – Broke the symmetrical triangle setting the stage for the next bullish roundPosted on Monday, March 21 2022 at 8:24 pm GMT+0000
Ethereum (ETH) gained significant buying traction over the last week and overstepped the 50-day simple moving average to break above the 2-month-old symmetrical triangle formation on Friday, with $5.82 billion removed from circulation.
The second-largest cryptocurrency has officially destroyed more than 2 million ETH via a burn mechanism that was introduced last year, in the London hard fork.
Ethereum is looking set to underpin the positive shift in the medium-term outlook while holding just beneath the last week’s highs. Additionally, the RSI is trying to extend its uptrend in the bullish region, and the MACD is climbing beyond its signal and zero lines, both suggesting that the positive impetus may amplify further.
If that’s the case, the price is expected to overcome the nearby March 1st high at 3,040 and head towards the February 10th top at 3,285. A violation of this level may boost buying interest towards the January 4th high at 3,900. However, in this scenario, the bulls won’t rest before reaching the target of the triangle at 4,255.
On the flip side, if the positive momentum starts to wane, the upper bar of the pattern will act as an immediate line of support in cooperation with the 50-day simple moving average. Should it give way, the price will drop back towards the lower band of the triangle and the March 7th bottom at 2,445. Diving past this barricade will bring the broad downtrend back into play triggering an immediate test of the January 24th low of 2,159.
To summarize, Ethereum broke above the symmetrical triangle setting the stage for the next bullish round. A sustainable move beyond 3,285 will open the gates towards the formation’s target.