On Tuesday, during the 24-hour trading session, Ethereum ETH/USD led the cryptocurrency sector to a small gain, rising by 3.08%, even as the S&P 500 plummeted over 1%. The climb in the top cryptos, which saw Bitcoin BTC/USD rising by 1%, resulted from Ethereum and Bitcoin converging at the apex of triangle patterns.
Ethereum and Bitcoin seemed to ignore the slightly negative market sentiment despite a debt ceiling crisis looming large and being discussed intently, with a fast approaching June 1 deadline, and instead focused on breaking out from the triangle pattern while trading above average volume. Gold also rose by approximately 0.35%, which could signify that traders anticipate a recession towards the end of the year.
Based on the analysis of current technical trends, Ethereum’s triangle pattern breakout, supported by above-average value, indicates a potential long-term upswing.
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The Ethereum Chart: When Ethereum rose on Tuesday, it almost touched the 50-day simple moving average and was subsequently rejected from the area. If Ethereum confirms a new uptrend by producing a higher low above Monday’s low of $1,791, bullish traders will want to see it. Ethereum faces resistance at $1,846 and $1,957, and support at $1,717 and $1,564.
- If Ethereum trades below the $1,860 level, it will print a shooting star candlestick, indicating that cryptocurrency prices are likely to decline on Wednesday. Ethereum could fall into a bull trap when it back-tests the upper descending trend line of the triangle and reverses course there, if it happens.
- If Ethereum falls beneath the upper trend line, it will continue to act as resistance and drive Ethereum lower, revealing that the breakout above the triangle was a bull trap.
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