- ETH could break to $3,350 due to bullish triangle pattern
- Lackluster demand could hurt breakout chances
Ethereum [ETH] Trading below the resistance zone at $2.8k which was undefeated since August. Recent progress upward was slow and lacked explosive momentum, but it has been gradually increasing since September.
Negative exchange netflows showed accumulation was in progress, but it was unclear whether it was enough to push prices past three-month highs.
Ascending triangle pattern promises $3.3k for ETH
Since September, Ethereum has been making a series of higher lows. It was unable to climb above the $2.8k resistance zone, forming an ascending triangle pattern. OBV has gradually moved higher over the past two months, but was well below the levels made in June and July.
This slow demand could weaken the size of the breakout. As things stand, a daily session above $2.8k would ideally lead to the $3,350 level.
This breakout may not be imminent and may take a few days to materialize. A drop to $2.5k was also possible. The RSI, although bullish, does not indicate a clear trend in October. DMI agreed, and at press time the ADX (yellow) was falling below 20.
High volume concerns on short time frames
Open interest and price have been moving strongly upward in the last three days. The funding rate has also increased in the last 24 hours. Both together signaled strong confidence in the shorter time-frame.
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Still, spot CVD failed to move higher, even though ETH is up 9.4% since October 26. The weakness shown in OBV along with lack of spot demand has raised questions on the strength of the bulls.
Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and is solely the opinion of the author.