Ethereum blockchain native’s token ETH expects to reach $750 in the fourth quarter as it holds above a crucial technical support level.
On Monday, the ETH/USD exchange rate attempted to breach a short-term ascending trendline for the tenth time since November 26. But bulls held up near the supportive base, raising the pair’s potential to log a rebound in the coming hourly sessions.
But retracement to where? Apparently, each of the Ethereum token’s rebound from the support trendline has exhausted near a resistance level of $621. Together, both the trendlines give the impression of an Ascending Triangle structure, a technical pattern that traders consider bullish.
In retrospect, Ascending Triangles appear in the midst of an ongoing trend. They tend to behave as a stopover range, an area wherein the asset consolidates for a while before continuing in the direction of its previous trend. Traders develop their setups accordingly.
A $750 Ethereum
Ethereum’s ETH token has formed a similar structure, confirmed by a horizontal resistance trendline accompanied by a rising one. The cryptocurrency now trades within the structure’s range, only to a breakout later to the upside. It was rallying upward before it formed the consolidation pattern.
Ethereum's Ascending Triangle pattern. Source: ETHUSD on TradingView.com
Josh Rager, the co-founder of Blockroots.com — a crypto trading education platform, noted that ETH/USD’s consolidation inside the Ascending Triangle pattern raises its possibility to form a higher high. He noted that the next leg upward would be at least above $700.
“Ethereum is just grinding up slowly over the past month,” he explained. “If price can hold this trend and make its way back up to retest $610+ — I would expect the next move to be a higher-high With a push to over $700.”
Per the chart above, the consequential upside target…