This is a daily technical analysis of Coindesk analyst and chartered market technician Omkar Godbole.
Ether
Seems to surpass the $ 3,000 mark as it forms an “rising triangle” pattern on the price diagram.
The rising triangle is characterized by horizontal upper-bound resistance or supply point that repeatedly hoods winnings and an upward-sloping support line.
Ether has been exposed to resistance to $ 2,735 several times over the past two weeks, while subsequent reaction signs have risen. Price action represents a rising triangle.
The higher low indicates that the purchase pressure is rising, which is what gives the rising triangle its bullish nature. In other words, the pattern represents accumulation that usually sets the stage for the next part of higher prices.
An expected breakout from the rising triangle would signal a resumption of the rally from April low near $ 1,390 and open the door for a step over $ 3,000.
The impending crossover of the 50-day simple sliding average (SMA) over the 100-day SMA supports the bullish case.
The move could be explosive as the gap between Bollinger Bands has narrowed to almost $ 250, which has consistently suspected volatility explosion since November.
Bollinger bands are volatility bands located two standard deviations above and below Cryptocurrency’s 20-day simple sliding average (SMA).
“Upward outbursts occur 77% of the time, and outbreaks occur about 61% of the distance from the base to the cradle,” wrote Chartered Market technician Charles Kirkpatrick in his book on technical analysis.
A potential downward break in the triangular consolidation would lapse the bull’s case and may invite a stronger sales pressure.
