The last few days have not been particularly good for ETH prices and the crypto markets in general. The crypto-asset dived to the $240 zone mid-week during a sudden sell-off, before bouncing back. However, it has remained in a tight range from $263 to $270. ETH is changing hands at $270 at press time, per data provided by CoinMarketCap.
Now, a couple of technical indicators are suggesting that this crypto-asset is poised for a major bullish breakout. This has been pointed out by a crypto trader going by the online alias RookieXBT.
Ethereum Flashes Several Bullish Patterns That Could Power ETH Higher
RookieXBT posited that ETH is posting 3 bullish signs that estimate that it is on the cusp of a major upside movement.
First, the trader cited that the Ethereum price is printing an ascending triangle pattern. In technical analysis, an ascending triangle structure is often associated with bullish price action. It is characterized by prices that are rolling higher at a slow pace and is mostly a continuation pattern which shows that the market is ready to resume upside action after a short period of consolidation.
Secondly, he noted that the RSI is creating a falling wedge pattern on the six-hour timeframe. The Relative Strength Index (RSI) is an indicator that measures the magnitude of price changes. It helps determine overbought or oversold conditions and when it forms a falling wedge pattern, it means that a huge upward move is underway.
Lastly, RookieXBT opined that there are hidden bullish divergences that are forming as ETH price makes higher highs and the Relative Strength Index forms lower lows. This hints that the RSI could soon break out of the wedge structure, subsequently pushing the Ethereum price above the fake top formed at around the $289 area. In another tweet, he observed that the way these indicators are unfolding “is getting interesting.”
Other technical indicators including the Ichimoku Cloud are also signaling further upside action for ETH. Thus, it’s entirely possible that the alignment of these technical stars could allow the crypto-asset to crack the $300 barrier in the coming days or weeks.