Ethereum’s Ascending Triangle and Market Outlook
Potential Breakout and Recent Rally
Ethereum (ETH) is currently forming a robust ascending triangle pattern, hinting at a potential breakout above the $2,150 mark. Following the Pectra upgrade, Ethereum surged past $2,400, overcoming a prolonged 10-week bear market. This rally was significantly influenced by a staggering $400 million in short liquidations. Despite these gains, it’s crucial to remain cautious due to overbought RSI levels and ongoing ETF outflows.
Analyzing Ethereum’s Bullish Patterns
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In a remarkable display, Ethereum has astounded the cryptocurrency markets with an impressive weekly gain exceeding 30%. Veteran trader Peter Brandt has identified the potential for further upward momentum. Brandt’s analysis underscores the formation of a multi-year congestion pattern, suggesting a possible significant upward movement as an ascending triangle takes shape. This pattern, often an indicator of an upward price trajectory, was highlighted in his analysis on May 9.
Supportive Trendlines and Technical Indicators
A long-term ascending trendline, connecting Ethereum’s 2020 bottom to the recent 2025 low, reinforces a positive outlook. This trendline provides essential support, especially as Ethereum hovers around the critical $2,150 resistance level, a pivotal point for a potential breakout.
Brandt’s analysis also highlights the $1,728 support zone as a crucial foundation, reflecting strong buying interest during market corrections. Moreover, technical indicators are aligning with bullish sentiment. The convergence of the 8-period and 18-period moving averages (MA) suggests a potential bullish crossover if momentum continues to build. Although the Average Directional Index (ADX) remains weak, it could strengthen if Ethereum surpasses the $2,150 resistance.
Ethereum’s Key Levels to Monitor
Ethereum has reclaimed its position among the top cryptocurrencies, outperforming Bitcoin and breaching the $2,400 threshold for the first time in over three months. This rally, commencing on May 8, marks the end of a 10-week bear market that saw Ethereum dip to $1,385 in early April. This sudden surge resulted in over $400 million in liquidations of ETH short positions, surprising many market participants.
The Pectra upgrade, a significant technical enhancement aimed at improving network scalability and usability, is credited for this upward trajectory. However, despite the price increase, U.S. spot Ether ETFs have experienced a third consecutive day of net outflows, losing $16 million on May 8. This suggests that the rally is primarily driven by on-chain fundamentals and broader macroeconomic factors, rather than institutional investments.
In-Depth Ethereum Price Analysis
As of the latest update, Ethereum is trading at $2,467, showing a 6% increase over the past 24 hours and a more than 35% gain on the weekly chart. Although Ethereum remains above its 50-day simple moving average of $1,823, it is still below the 200-day SMA of $2,559, indicating a mixed technical setup. The 14-day relative strength index (RSI) signals a potential correction at 81.
Despite these technical indicators, market sentiment remains neutral, with the Fear & Greed Index at 70 (Greed), suggesting ongoing positive momentum that could drive further gains. As Ethereum navigates these critical levels, traders and investors should stay informed about market dynamics and potential price movements.
