Ethereum (ETH) – Testing the upper-bar of the ascending trianglePosted on Tuesday, January 10 2023 at 8:14 pm GMT+0000
Ethereum (ETH) staged an epic start to the new year as it climbed to confront the 1,351 resistance hurdle that being the upper bar of an ascending triangle created over the last couple of months.
This type of triangle usually forms as a continuation pattern during an uptrend. However, in some instances, such triangles could appear at the end of a downtrend and indicate a reversal in the market. Wherever they may form, ascending triangles are bullish patterns that indicate accumulation.
Noteworthy is the expansion of the Bollinger bands, which is signifying that the volatility has risen again in the market, while the oscillators are sending clear encouraging signals. The ROC is strengthening in the positive region while the TSI has shot above its signal and zero lines. Additionally, the OBV has been rising over the last few sessions, rising the odds for further price advances.
For that to happen, the buyers will need to secure a sustainable move above the upper bar of the triangle at 1,351. Such a move will immediately send the price toward the November 2nd inside swing bottom of 1,502. Overstepping this too will open the door for the November 4th top of 1,677 overlapping with the pattern’s target.
Otherwise, if the sellers resurface near the adjacent resistance mark and steer the price lower, they could face initial friction from the 20-day moving average at 1,235 before challenging the lower bar of the pattern. By squeezing the price below that hurdle, they will turn their attention to the lower Bollinger band ahead of the 1,080 – 1,070 tough support zone. Sliding lower, the summer bottom at 880 could step under the radar.
In a nutshell, Ethereum is expected to haunt more gains in the forthcoming sessions should it stage a jump above the two-month-old bullish triangle formation.