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On May 5th, the Ethereum price witnessed a massive inflow and recorded a 6.3% intraday gain. Reports say several traders are turning their Pepecoin profits into Ethereum causing this sudden spike in price. Furthermore, with the recent jump, the coin price breached a resistance trendline of a symmetrical triangle pattern indicating an additional confirmation for a recovery rally.
Key Points:
- The Ethereum price correction didn’t plunge below the 50% Fibonacci retracement level indicating the overall market trend is bullish.
- A bullish breakout from the symmetrical triangle patterns may trigger a fresh recovery in the Ethereum price
- The intraday trading volume in Ether is $10.9 Billion, indicating a 65.5% gain.
Source- Tradingview
The recent correction in Ethereum price turned sideways after hitting the $1800 support and shaped into a famous chart pattern called a symmetrical triangle pattern. This pattern formation creates a temporary consolidation phase which eventually triggers a direction rally once the price breach either of its trendlines.
With the recent price hike, the buyers breach the pattern’s overhead trendline and local resistance of $1946, offering an addition for uptrend resumption. However, the coin price is 3%, and retest the aforementioned resistance as potential support.
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If the Ethereum price manages to sustain above the new flipped support, interested traders can look for an entry opportunity to go long. The post-breakout rally may surge the coin price 10% higher to hit the last swing high of $2140.
On a contrary note, if the daily candle closes below $1946 or the pattern’s trendline bullish thesis will offset.
Technical Indicator
Moving Average Convergence Divergence: A bullish crossover between the MACD(blue) and signal(orange) line hints at a sign of upcoming recovery.
Bollinger Band: The Ethereum price surged above the midline of the Bollinger Band indicator suggesting the market buyers are wrestling to take trend control.
Ethereum Coin Price Intraday Levels-
- Spot rate: $1930
- Trend: Bearish
- Volatility: Medium
- Resistance level- $2143 and $2400
- Support level- $1800 and $1700
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/bullish-pattern-complete-forecast-ethereum-price-to-surge-10-in-coming-week/