This is a daily technical analysis by Coindesk analyst and chartered market engineer Omkar Godbole.
ether
ETH$2,641.68
It appears poised above the $3,000 mark to form a “rising triangle” pattern on the price list.
The rising triangle is characterized by a horizontal upper limit resistance or supply point that repeatedly upwards and a vertical upper limit of the upward support support line.
Ether has faced resistance multiple times over the past two weeks at $2,735, but the response has risen since. Price action represents an increasing triangle.
A higher or lower indicates an increase in purchasing pressure. This gives the rising triangle a bullish nature. In other words, this pattern usually represents an accumulation that sets the stage for the next leg at a higher price.
ETH Daily Chart. (tradingView/coindesk)
The expected breakout from the ascending triangle marks the reopening of gatherings near $1,390 from the April low, opening the door for travelling over $3,000.
The impending crossover of a 50-day Simple Moving Average (SMA) above the 100-day SMA supports bullish cases.
The move could be explosive as the gap between the Bollinger bands has shrunk to nearly $250, and has consistently booked volatility explosives since November.
The Bollinger Band is a volatility band that places two standard deviations above and below the 20-day Simple Moving Average (SMA) of cryptocurrencies.
“Upward breakouts occur 77% of the time, and breakouts occur around 61% of the distance from the base to the cradle,” chartered market engineer Charles Kirkpatrick wrote in a book on technical analysis.
The potential shortcomings of triangular integration rests can deny the bull’s case and lead to stronger sales pressure.