How Ethereum Price Could Capitalize On This Triangle Breakout To Rally Past $150?

By John Isige
Published March 18, 2020 Updated March 18, 2020
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How Ethereum Price Could Capitalize On This Triangle Breakout To Rally Past $150?

By John Isige
Published March 18, 2020 Updated March 18, 2020
  • Ethereum price recovery capped by a descending trendline forming part of the falling triangle.
  • ETH/USD breakout from the falling triangle pattern could easily take out the resistance at $130 and $150 is fundamentally supported.

Following the thunderous plunge to $90 last week, Ethereum price has been consolidating within a triangle pattern. Recovery has been capped under a descending trendline while $150 remains a critical (decision/pivot) point to the second-largest cryptocurrency. The rejection from $150 has also highlighted other support areas at $110 and $100.

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At the time of writing, ETH/USD is trading at $118. A positive relative change hints that buyers are slightly in control. At the same time, Ethereum price has grown 1.64% from its opening value ($116) on Wednesday.

From a technical perspective, the Relative Strength Index (RSI) shows that the trend is in the favor of the bulls. However, the buyers lack the power or catalyst to break above the resistance at $120 and sustain gains towards $130. ETH/USD is also trading below the moving averages; a sign that selling activities are still high. The widening gap between the 50 SMA and the 100 SMA is a key indicator of the selling pressure.

ETH/USD 4-hour chart

ETH/USD price chart
ETH/USD price chart by Tradingview

On the brighter side, Ethereum’s consolidation in the falling triangle could end up in an upward breakout. A rally, although a brief one is expected to pull ETH/USD above $130. Significant movement upwards will also encourage more investors and buyers to join the market as sentiments change positively towards Ether. Increased trading volume and supporting fundamentals could eventually boost ETH/USD towards $200.

Ethereum Key Levels

Spot rate: $118

Relative change: 1.93

Percentage change: 1.66%

Volatility: High

Trend: Short term bearish bias

 

 

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1106 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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