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Ascending triangle increases the likelihood of uptrend for Ethereum

Dec 7, 2020 Forex News

Today, the pair ETH/USD tried to rise above the level of $600, but again without success. The ETHU/USD pair has only managed to rise above $600 twice since December 1, but it was rapidly losing momentum, approaching the level of 620.

As a result, the pair ETH/USD formed two triangles on the 4-hour chart. The first ascending triangle began to form on November 26. It has support in the form of an uptrend line and is limited by the level of $622. The second descending triangle began to form on December 1. Now it limits the movement of the ETH/USD pair by the level of 600 and 590. And it seems that in the next few hours, the ETH/USD pair will need to decide on further movement.

Looking at the ascending triangle, these patterns appear during an uptrend. They temporarily slow down the price movement for consolidation to continue moving in the direction of the previous trend.

Analysts predict that ETH/USD will move upward through the triangle formed. The current Ethereum consolidation within the triangle increases the likelihood of a higher high forming. Analysts do not exclude that the next high of the ETH/USD pair will be $700 since the breakout of the ascending triangle usually pushes the price up to the maximum height of the pattern. In our case, the height of the triangle is $141 respectively, the ETH/USD pair has a growth potential of $750.

The launch of Ethereum 2.0 has had a positive impact on the network. Investors expect an increase in demand for cryptocurrency soon. Grayscale Investments records the growth of investors who have only Ethereum in their investment portfolio.