Ethereum kicked off the second quarter with a bang as its price has risen nearly 9% in the past 24 hours. The bullish impulse allowed ETH to break out of a consolidation pattern, pointing to further gains on the horizon.
Ethereum Primed to Resume Uptrend
The second-largest cryptocurrency by market capitalization endured a month-long stagnation period, making a series of lower highs and higher lows. Such market behavior led to the formation of a symmetrical triangle on Ether’s daily chart.
A sudden spike in buy orders has allowed ETH to break out of the consolidation pattern. By measuring the height of the triangle’s y-axis and adding it to the breakout point, it projects that Ethereum is primed for a 37% upswing.
If validated, further upward pressure could catapult Ethereum towards a new all-time high of $2,560.
The SuperTrend indicator adds credence to the optimistic outlook. The trend-following overlay flashed a “buy” signal on the daily chart as Ethereum’s price sliced through the $1,930 resistance.
This is the first time since late October 2020 that the SuperTrend has turned bullish. More importantly, this technical indicator has twice forecasted the beginning of a new uptrend ETH rose by 187.40% and 455.40%, respectively.
Although the current trend suggests that Ethereum is heading to new all-time highs, market analyst Rekt Capital believes in a pullback before continuing the uptrend.
The analyst maintains that the $1,925-$1,980 price pocket would not be easy to break at once. Therefore, Ether would likely be forced to retest the symmetrical triangle’s breakout point before it advances further.
“A successful retest would likely result in a break past [resistance],” said Rekt Capital.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
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Author: Ali Martinez