- ETH is at a decisive point as the alt coils up within a symmetrical triangle.
- Market players may anticipate a 34% move towards either direction due to the setup’s vague nature.
- An upward move appears unlikely because of many resistance levels.
ETH price movements present a fascinating pattern that predicts a massive move in either direction. Nevertheless, the technical viewpoint shows a downward action is more plausible for Ethereum.
Ethereum Price Stuck in Consolidations
Ethereum price printed two higher lows and three lower peaks since 24 January. Connecting the swing level with trend lines reveals a symmetrical triangle pattern. Meanwhile, this technical setup predicts a 34% price move in either direction. That forecast results from measuring the range between the initial swing peak and low.
A bullish break around $2,882 will see the alt climbing to $3,874, whereas a bearish action under $2,405 will take Ether to the $1,578 lows. Nevertheless, the weekly supply territory stretching between $2,927 and $3,413 makes an upward move less likely. Furthermore, the 50-day SMA has capped the ETH price over the past three months.
Moreover, the 100-day Simple Moving Average within the weekly supply region makes the confluence a massive obstacle to conquer. That way, a 6hr candle close beneath $2,405 would reveal a 34% downside breakout, opening the path towards the $1,578 lows. However, the weekly support floor at $1,730 might see Ethereum bulls preventing such a massive retracement.
On the other side, a massive buying pressure surge will see the altcoin launching an upward breakout. With that, market players may expect the 200-day Simple Moving Average of around $3,453 or $3,600 to cap the token’s upside.
Any move past this zone will necessitate massive bid orders or colossal stable coins inflows, which seems unlikely due to Bitcoin’s consolidative nature and Ethereum’s correlation to it.
Meanwhile, Ethereum blockchain has its gas feed plummeting to the lowest mark since 2021 August. CoinMetrics data shows the 7-day MA cost of an ETH transaction as of yesterday (9Mrch) was $11.14. That had it exploring levels seen in mid-2021 before a dramatic surge towards $55 towards the year-end.
James Thompson