Ethereum has the potential to extend its ongoing upside move towards or above $1,500.
The second-largest cryptocurrency broke above a consolidation price channel on Wednesday, breaking its upper trendline on surging volumes. So it appears, the channel is an Ascending Triangle that traders perceive as a bullish continuation indicator.
An Ascending Triangle structure develops when an asset fluctuates between a horizontal resistance line to form swing highs and a rising trendline to form swing lows.
Therefore, if the asset trades upward before forming the said structure, its potential for continuing the trend higher increases following a breakout move through the horizontal line; Typically, the breakout target lurks near the level at a distance equal to the length of the previous uptrend move, otherwise known as “Flagpole.”
The Ascending Triangle Setup
Ethereum formed a similar structure following its explosive move from $757 to $1,169. The Triangle pattern established a horizontal resistance line near $1,127. The ETH/USD exchange rate broke the