Ethereum has the potential to expand its ongoing upward move towards or above USD 1,500.
The second largest cryptocurrency broke above a consolidation price channel on Wednesday, breaking the top trendline on rising volumes. So it appears that the channel is a bullish triangle that traders see as a bullish continuation indicator.
An Ascending Triangle structure develops when an asset fluctuates between a horizontal resistance line to form swing highs and an ascending trend line to form swing lows.
Therefore, if the asset trades upwards before forming said structure, its potential to continue the trend higher increases after a breakthrough move through the horizontal line; Usually, the escape target lurks near the level at a distance equal to the length of the previous upward movement, also known as ‘flagpole’.
Set the ascending triangle
Ethereum formed a similar structure after his explosive move from $ 757 to $ 1,169. The triangle pattern established a horizontal resistance line near USD 1,127. The ETH / USD exchange rate broke the level during the European session on Wednesday, reaching an intraday high of $ 1,170.
Ethereum enters the resistance range with a history of undergoing sell-offs. Source: ETHUSD on TradingView.com
The price has been entered in the colored region as shown in the chart above. It kept the history of sending ETH / USD down due to higher sales sentiment. So it appears that traders with a short term outlook also benefited from the pair’s intraday high on Wednesday. Nevertheless, the price remained above the horizontal line, indicating the potential to extend the breakthrough upwards.
Ethereum up to $ 1,500
A further break above Ethereum’s session high of $ 1,168 could prompt traders to check out the Ascending Channel’s breakthrough target. The height of the flagpole before the formation of the pattern is about $ 395. That puts about ETH / USD on the way to over $ 1,500.
Bitcoin and Ethereum trade volumes near best single-day peaks. Source: itBit
More evidence of a potential Ethereum rally comes from retail demand. Nugget News Founder Alex Saunders shared a one-day volume chart for Bitcoin and Ethereum sourced from itBit, a digital asset platform owned by PayPal’s crypto service provider Paxos. He said:
“Retail demand is skyrocketing for BTC and ETH with on track to break their highest daily volume of $ 110 million. The general public is confronted with the magical internet money bug just as a wave of institutional money is pouring in. “