Ethereum’s native token, Ether (ETH), looks ready to grow stronger compared to the U.S. dollar and Bitcoin (BTC) in the days leading up to its proof-of-stake transition in September.
ETH price chart bullish setup
The bullish outlook emerges from classic technical indicators on ETH/USD and ETH/BTC charts. For instance, ETH/USD has been forming a “falling wedge” pattern with a profit target sitting around 30% above the current prices.
Meanwhile, the ETH/BTC chart is painting a potential “bull flag” that could increase the price by approximately 10% from current price levels upon resolution.
Here’s how these bullish setups could play out.
Ethereum to $2K next?
Falling wedges form when the price trends lower inside a descending, contracting channel.
In other words, ETH’s price could grow anywhere by 30%–55% in September.
ETH/BTC bull flag setup
The pattern resolves after the price breaks above its upper trendline, followed by an extended upside move toward the level at a length equal to the size of the previous uptrend, also called flagpole. As a result, analysts call bull flags “bullish continuation” patterns.
Ether has been forming a bull flag against Bitcoin since early August, awaiting breakout as it tests the structure’s upper trendline for one. Suppose it happens, then the price could rise toward 0.087 BTC, up approximately 10% from August 3’s price.
Alternatively, ETH/BTC could flip lower to retest the flag’s lower trendline. This trendline appears to be coinciding with a support confluence consisting of a 50-day EMA (the red wave) and the 0.618 Fib line at 0.0729 BTC.
Related: Ethereum miner balance reaches four-year high weeks before the Merge
The pullback will not invalidate the bull flag breakout setup unless the price breaks below the lower trendline. But if it does, ETH/BTC risks falling toward $0.088 BTC, a level synchronous with the 0.5 Fib line and the 200-day EMA (the blue wave).
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Source: https://cointelegraph.com/news/ethereum-to-2k-eth-price-bull-flag-hints-at-september-gains-versus-bitcoin-dollar