This Ethereum Triangle Breakout Puts Price Above $24,000, Here’s The Path

Overview

Ethereum is approaching a critical phase that could lead to significant long-term price growth. An analysis shared by a TradingView analyst indicates that, despite facing short-term challenges, Ethereum is strategically positioned for a substantial upward movement. If the ongoing formation unfolds as anticipated, projections suggest that Ethereum’s price could surpass $24,000.

Long-Term Structure Remains Intact

From a broader perspective, the analyst emphasizes that Ethereum has maintained its established trend since 2020. During this period, the price action has consistently formed higher highs, reinforcing the notion that the long-term structure remains valid. The prolonged consolidation observed in recent years is interpreted as a stabilization process within a well-defined range rather than an indication of failure.

This trading range spans between $1,000 and $3,000, with the $1,000 level identified as a crucial psychological and structural support. The analysis highlights that Ethereum’s ability to remain above this level is vital for sustaining a bullish outlook. Holding above $1,000 enables Ethereum to continue developing a large ascending triangle, a chart pattern typically associated with strong continuation moves once completed.

Current Price Phases and Support Levels

Within this ascending triangle, the analyst notes a clear progression of internal price phases. Two major legs of this structure have already formed, and Ethereum is currently navigating through the final phase required to complete the setup. Although this phase has introduced some short-term bearish signals, these fluctuations are viewed as part of the broader structure rather than a definitive breakdown.

As the price approaches the lower boundary of the triangle, several support layers converge. These include a rising structural trendline and key moving averages that have historically provided support for Ethereum’s price. The analyst suggests that stabilization and a bounce are likely in this vicinity, provided Ethereum does not fall below the triangle’s lower limit. A breach below this level would invalidate the triangle formation, but current conditions indicate that the risk remains manageable.

Path to a Breakout

The bullish scenario relies heavily on confirmation. Once the triangle is fully developed and Ethereum breaks above its upper boundary, the analyst anticipates a continuation move to unfold. Based on the size of the formation and historical market behavior, the projected upward movement points to a potential increase of approximately 300% from current levels. This significant expansion, when applied to Ethereum’s existing range, suggests a primary bullish target exceeding $24,000.

It is important to note that this projection is not framed as a short-term price target but rather as a potential outcome stemming from the resolution of a multi-year structure.

From author

The analysis presents a compelling picture of Ethereum’s potential trajectory based on technical formations and historical trends. However, it is crucial to monitor how the market reacts to the ongoing consolidation phase. The interplay between support levels and the upper boundary of the triangle will be pivotal in determining whether Ethereum can sustain its upward momentum.

Impact on the crypto market

• Ethereum’s potential breakout could set a new precedent for price movements within the cryptocurrency market.
• A sustained move above $24,000 may attract increased investor interest and participation.
• The consolidation phase and subsequent breakout could influence trading strategies across various cryptocurrencies.
• Growing institutional participation and record stablecoin transfer volumes on the Ethereum network may enhance overall market confidence.
• The outcome of this technical formation could encourage similar bullish scenarios in other digital assets experiencing consolidation.