- The bullish triangle pattern could see ETH breakout toward $3,350
- Unenthusiastic demand could hurt the chances of a breakout
Ethereum [ETH] was trading beneath the resistance zone at $2.8k which was unbeaten since August. The recent move upward was slow and lacked explosive momentum, but has been gradually building up since September.
Negative exchange netflows showed that accumulation was in progress, but it was unclear if this was enough to push prices past the three-month highs.
Ascending triangle pattern promises $3.3k for ETH
Source: ETH/USDT on TradingView
Since September, Ethereum has been forming a series of higher lows. It was unable to climb past the $2.8k resistance zone, forming an ascending triangle pattern. The OBV has slowly trended higher over the past two months but was well below the levels it maintained in June and July.
This lukewarm demand could weaken the size of the breakout. As things stand, a daily session close above $2.8k would ideally reach the $3,350 level.
This breakout might not be imminent and could take a few days to materialize. A dip toward $2.5k was also a possibility. The RSI, though bullish, did not signal a clear trend in October. The DMI agreed with this, and at press time the ADX (yellow) was falling below 20.
More volume concerns on the lower timeframes
Source: Coinalyze
The Open Interest and the price have been strongly trending upward in the past three days. The funding rate also surged higher over the past 24 hours. Together they indicated firm bullish belief in the lower timeframes.
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Yet, the spot CVD failed to pick up even though ETH is up by 9.4% since the 26th of October. This lack of spot demand alongside the weakness the OBV exhibited raised questions about the bulls’ strength.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
