Ethereum’s Price Just Formed a Pivotal Bullish Breakout
- Ethereum has dropped dramatically since the August highs of $490.
- The coin now trades for $370, around 25% below those highs.
- While Ethereum is still far below the highs, the coin is printing positive medium-term to long-term signs.
- One top cryptocurrency trader shared that the asset is breaking above a multi-week triangle/pennant pattern.
- This breakout suggests there will be a continuation to the upside in the weeks ahead.
- His bullish sentiment has been echoed by other market participants who also see Ethereum’s medium-term trend remaining bullish.
Ethereum Forms Pivotal Bullish Breakout Pattern
Leading Binance futures trader Logan Han expects for Ethereum to continue its ascent after forming a bullish breakout. He noted that the coin recently broke above a descending triangle pattern after weeks of consolidation, suggesting the medium-term trend is bullish.
He shared a chart suggesting that head into the end of 2020, Ethereum will continue the ascent it has seen in the middle of the year.
This comes shortly after he noted that ETH’s price action now looks similar to that seen prior to the exponential rally at the end of 2017 and the start of 2018.
Chart of ETH's price action since the miiddle of 2018 with an analysis by crypto analyst and top Binance trader Logan Han (@LohanHan_ on Twitter). Source: ETHUSD from TradingView.com
Others expect the asset to break higher. One crypto analyst noted that as long as the cryptocurrency holds the $350 region on a macro time frame, it will move towards $700 in the months ahead.
The chart shows that $350 has been pivotal for Ethereum over recent years. In 2017, it acted as a launchpad for a rally to $1,400 while in 2018, it acted at a point where the asset underwent a dead cat bounce.
Chart of ETH's price action over the past few years with a Renko candle analysis by crypto trader Cold Blooded Shiller (ColdBloodShill on Twitter). Source: ETHUSD from TradingView.com
Fundamentals Stronger Than Ever
The fundamentals of Etheruem are stronger than ever.
Speaking at a CoinDesk event, Heath Tarbert, the chairman of the U.S. Commodities and Futures Trading Commission (CFTC), said that he has been impressed with Ethereum, “period.” He added that compared to Bitcoin, which he sees as more like email in terms of relevance, Ethereum is “more like the Internet.”
Spencer Noon, a fund manager in the space, also noted that there is a vast amount of on-chain trends showing that Ethereum is being used more than ever.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Ethereum's Price Just Formed a Pivotal Bullish Breakout