Ethereum forms a bullish triangle consolidation, suggesting the possibility of surpassing 3000 dollars: Technical Analysis | CoinDesk JAPAN

! Ethereum Forms a Bullish Triangle, Suggests $3000 Possible: Technical Analysis

• Ethereum is forming an ascending triangle, suggesting the possibility of a rise above 3000 Dollars.
• The 50-day Simple Moving Average (SMA) is approaching a crossover above the 100-day SMA, indicating a bullish trend.
• As indicated by the contraction of the Bollinger Bands, a breakout can lead to significant volatility.

Ethereum (ETH) is forming a "bullish triangle consolidation" on the price chart and is showing momentum to break through the 3000 Dollar level.

A bullish triangle consolidation is characterized by a horizontal resistance line that repeatedly restrains the upward movement and an upward support line.

ETH has faced resistance multiple times at 2735 Dollar over the past two weeks, but the subsequent lows are on an upward trend. This price fluctuation is forming a bullish triangle consolidation.

The fact that the lows are getting higher indicates that buying pressure is increasing, which gives this triangular consolidation a bullish nature. In other words, this pattern indicates accumulation and typically serves as a foundation for the next price increase.

[ETH Daily Chart: TradingView/CoinDesk] The expected breakout from this triangular consolidation implies a resumption of the uptrend that began near the April low of 1390 Dollars, opening the possibility for a move above 3000 Dollars.

The fact that the 50-day Simple Moving Average (SMA) is about to cross above the 100-day SMA also supports a bullish outlook.

Additionally, the bandwidth of the Bollinger Bands has narrowed to around 250 Dollar, which has always been a precursor to a sharp rise in volatility since November, so the subsequent movement could be explosive.

Bollinger Bands are volatility bands set at two standard deviations above and below the 20-day simple moving average (SMA) of a cryptocurrency.

"Breakouts to the upside occur with a probability of 77%, and the breakout happens at a distance (time) of about 61% from the base to the cradle," writes Charles D. Kirkpatrick II, a certified technical analyst, in his book on Technical Analysis.

When the triangle consolidation breaks downward, the bullish outlook may be negated, and selling pressure may increase.