[Blockchain Today Correspondent Kim So-yeon] A claim has been made based on technical analysis that Ethereum (ETH) could reach over $10,000 in a few weeks as it exhibits an ‘ascending triangle’ pattern, Cointelegraph reported on the 23rd (local time). reported
The ascending triangle is the ‘bullish continuation steups’ that appear during bullish periods. According to chart analysts, this triangle is mostly identified after price rises within an ascending right-angled triangle. Thus, it forms a series of lower highs on the lower trend line and resistance on the upper trend line, and usually the volume decreases as this pattern develops.
Cointelegraph recently reported that Ethereum is forming a similar upward pattern on the weekly chart. Specifically, as shown below, from the beginning of 2021, the lower trend line of the triangle has been the accumulation range, and the upper trend line has been acting as a high selling pressure section.
The basic principle of the ascending triangle pattern appears before a rally, where the price rises by the maximum distance between the upper and lower trendlines at the breakout point.
If we apply the same characteristics to Ether’s ascending channel and analyze it, Ether can reach a decisive breakthrough in the rally towards $10,000. The higher timeframes, which show price movements from one hour to one day, reveal another technical pattern targeting $4,000.
Independent market analyst Wolf also said that “Ether is showing signs of recovery in an inverted head and shoulders pattern, and a subsequent price rebound is expected.”
Ether’s ascending triangle pattern appears to have formed as it rallied more than 25% in less than four weeks after it bottomed near $2,150 in January.
However, some analysts, such as TradingView market commentators, called the recovery rally a ‘bull trap’. Ether’s rising triangle is meaningless and we should pay attention to the downward trend line that has been acting as resistance since November of last year.
Ether is currently trading below the given upper price limit, showing an upward trend in momentum indicators such as Relative Strength Index (RSI), Moving Average Convergence Diffusion Index (MACD) and Stochastic RSI. bearish divergence) was confirmed. And this is mostly a pattern that leads to a price reversal. If such a move occurs, the price of Ether could drop to as low as $2300. Conversely, a successful break of the downtrend line resistance could turn the Ether market into a bull market.
Despite this mixed outlook, Ethereum’s network indicators are bullish, according to Cointelegraph. For example, the Ethereum network has steadily increased user addresses by 1.53 million per month from 2021, attracting about 18.36 million new addresses so far.
In addition, Glassnode announced in a recent report that the number of Ethereum addresses holding at least one Ether broke the record high, with 1.42 million on February 9. Non-zero addresses and addresses with at least 0.1 ETH in Ether also reached new highs as of February 15, reaching around 75 million and 7 million, respectively.
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