Ethereum has been consolidating within an ascending triangle pattern over the past several weeks, and the cryptocurrency appears to have successfully broken above the upper boundary of this formation.
With price currently trading at $2,752.86, ETH/USD is now testing the psychological resistance level around $2,700-$2,750, having staged an impressive rally from the triangle’s lower support.
The ascending triangle breakout suggests that bullish momentum is gaining traction, with buyers demonstrating their ability to sustain higher highs and higher lows throughout the formation. The breakout above the triangle resistance typically signals continuation of the underlying uptrend, potentially targeting measured moves equivalent to the channel’s height.
However, Ethereum now faces a critical test at the horizontal resistance zone around $2,750-$2,800, which has previously acted as a significant ceiling for price action. A decisive break above this level with strong volume confirmation could open the door for further upside toward the $2,900-$3,000 psychological levels.
Bullish SMA Structure
The moving average configuration presents a clearly bullish picture for Ethereum. The 100 SMA (blue line) has crossed above the 200 SMA (red line), forming a golden cross that confirms the path of least resistance is to the upside. This bullish crossover suggests that the longer-term trend has shifted in favor of buyers.
Price is currently trading well above both key moving averages, which are now likely to act as dynamic support levels on any potential pullbacks. The gap between the 100 and 200 SMAs continues to widen, reflecting strengthening bullish momentum and suggesting that the uptrend has room to extend further.
The ascending trend line that forms the lower boundary of the triangle has also been reinforced by the moving averages, creating multiple layers of support that could cushion any corrective moves. This technical confluence increases the probability that buyers will step in to defend these levels during temporary weakness.
Mixed Momentum Signals
The stochastic oscillator is currently hovering in the upper portion of its range, approaching overbought territory around the 80 level. While this suggests that buying pressure remains strong, it also indicates that Ethereum may be due for a short-term consolidation or pullback before the next leg higher.
The MACD histogram appears to be maintaining positive momentum, with the signal lines trading above the zero line. However, the rate of change seems to be moderating slightly, which could indicate that the current rally is losing some steam and may need to pause for consolidation.
Looking ahead, Ethereum traders should focus on the $2,800 resistance level as the key battleground for bulls and bears. A clean break above this zone could trigger the next wave of buying interest, potentially targeting the previous swing highs around $2,900. Conversely, rejection at current levels might lead to a retest of the broken triangle resistance, now expected to act as support around $2,650-$2,700.
