Ethereum (ETH/USD) is forming an ascending triangle structure on its hourly time frame, signaling that the cryptocurrency may be poised for additional upside momentum.
The digital asset is currently trading near $2,550 after bouncing off the triangle’s lower boundary, with the formation suggesting a potential target that matches the triangle’s height projected from the breakout point.
The ascending triangle pattern, characterized by a series of higher lows connected by an upward-sloping trend line around $2,500 and a horizontal resistance level around $2,580, has been developing over the past two weeks.
This bullish continuation pattern typically indicates strong underlying demand, as buyers have been willing to step in at progressively higher price levels while sellers have consistently defended the same resistance zone.
Following a possible breakout, Ethereum could potentially target the $2,650-$2,700 area, which represents the triangle’s measured move objective. However, the recent breakout will need to be sustained with conviction, as false breakouts from triangle patterns are not uncommon in volatile cryptocurrency markets.
Bullish SMA Momentum
The moving average structure on Ethereum’s chart presents a compelling bullish picture. The 100-period simple moving average (blue line) has maintained its position above the 200-period SMA (red line) throughout the recent consolidation, confirming that the path of least resistance remains to the upside. This bullish alignment has provided consistent dynamic support during pullbacks, with price respecting these levels on multiple occasions.
Currently, the 100 SMA sits around $2,500, offering immediate support should Ethereum experience any post-breakout weakness. The 200 SMA, positioned near $2,480, provides a secondary layer of support and represents a key level that bulls will want to defend to maintain the current uptrend structure.
The gap between these moving averages has been widening over recent sessions, indicating strengthening bullish momentum. This divergence often occurs during the early stages of significant upward moves and suggests that institutional and retail interest in Ethereum may be building.
Room For Further Advances
Momentum indicators are providing mixed but generally constructive signals for Ethereum’s near-term outlook. The stochastic oscillator has recently emerged from oversold territory and is trending higher, suggesting that buying pressure is beginning to outweigh selling interest. The oscillator has considerable room to climb before reaching overbought conditions, indicating that the current rally could have additional legs.
The MACD indicator appears to be approaching a potential bullish crossover, with the signal lines converging near the zero level. A definitive move above zero would confirm the momentum shift and could attract additional buying interest from technical traders who follow MACD signals.
The histogram bars have been gradually increasing in magnitude on the positive side, reflecting growing bullish momentum that aligns with a possible triangle breakout. Overall market sentiment in the broader financial sector, as well as in the crypto industry, could determine which direction Ethereum could break out and whether it could sustain a measured move as a result.
