Is Ethereum (ETH) about to break out?

Since making its all-time high, the $ETH price has been trending downwards. However, momentum indicators have reset, and the price is at the end of a pattern that is breaking now. Could this breakout send $ETH back to its high?

$ETH breakout from descending triangle

Source: TradingView

The above 4-hour chart for $ETH reveals a descending triangle, with the price right at the tip, and possibly about to break to the upside. Descending triangles are generally bearish, and a breakout would normally be expected to be to the downside. However, if this breakout does occur, and it is confirmed, this would be rather bullish.

Of course, this could just be a small fakeout, as has happened previously, and this could just turn around and exit through the bottom of the triangle. More time is needed to assess this, although a break one way or the other has to come, and within the next few hours.

$ETH daily chart is positive

Source: TradingView

The daily chart is looking optimistic. While we are still waiting to see if the $ETH price does break out to the upside, the two indicators at the bottom of the chart are in its favour. Firstly, the Stochastic RSI indicators are at the bottom and look to be crossing back up. At the same time, the RSI indicator line is right at the point of breaking up through the descending trendline. 

Uncertainty in the weekly chart

Source: TradingView

Looking at the $ETH price on the weekly time frame, things are more uncertain. While the current potential breakout could lift the price back to its high point, the Stochastic RSI indicators are on their way down. Yes, they could still bounce again, especially if the $ETH price rises strongly, but the indicators are going to have to come down eventually.

The MACD indicator at the bottom of the chart shows its indicators angled upwards, but there could be the first signs that these might start to tip over. The bars in the histogram are reducing and have turned light green. Also not the best sign.

In conclusion, the $ETH price could break out to the upside, but in the longer term time frame there might be a bigger correction to come. Could it see the price come back to retest the incredibly strong $4,000 support level?

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.