Ethereum forms a rising triangle pattern with the potential to break through the $3000 barrier.

Gate News bot reported that ETH has formed an “ascending triangle” pattern on the price chart, with a potential breakout above the $3,000 mark. The characteristics of the ascending triangle are a horizontal upper boundary resistance level or supply point that repeatedly limits the rise, and a support line that slopes upwards.

In the past two weeks, ETH has encountered resistance multiple times at $2,735, while the subsequent pullback lows have been rising, indicating an ascending triangle pattern.

The continuous rise in the lows indicates that buying pressure is increasing, which is the essence of a bullish ascending triangle. In other words, this pattern represents the accumulation of price, usually laying the foundation for the next round of rise.

The expected breakout of the ascending triangle will signal a recovery rebound from the April low near $1,390, opening the way for a breakout above $3,000.

In addition, the 50-day simple moving average (SMA) is about to cross the 100-day simple moving average, supporting a bullish judgment.

This move could be explosive, as the gap between the Bollinger Bands has narrowed to nearly $250, indicating a volatility breakout since November. The Bollinger Bands are volatility bands that are two standard deviations above and below the 20-day simple moving average of the cryptocurrency (SMA).

However, it is important to note that a potential downward breakout from the triangle consolidation pattern will negate the bullish judgment and may trigger stronger selling pressure.

Source: CoinDesk