Ethereum optimistic with formation of ascending triangle and falling wedge
The cryptocurrency market has been struggling to see any strong bullish momentum in the past week, as Bitcoin and major altcoins have been in a consolidating phase ever since the drastic fall on 24th September. Ethereum performance was no different as its price fell from $197.29 on 11th October and went as low as $168.15 on 18th October. However, the altcoin looked set for a short term bullish burst on the 1-hour and 4-hour price charts.
At press time, Ethereum was trading at $174.41 with a minimal gain of 0.97% on the 24-hour price chart. The total market cap of ETH stood at $18.87 billion as per CoinMarketCap data.
1-Hour Price Chart
On the one-hour price chart, Ethereum formed an ascending triangle which is characterized by a constant high formed at $174.38 and higher lows meeting the triangle at $168.30, $171.63 and $173.03. The formation of an ascending triangle is considered bullish as it is often followed by an upward price breakout.
Ema ribbon suggested that the volatility has been on a decline and once the price breakout from the ascending triangle the ema-ribbon might act as a support. At press time, the ribbons were in between and were neither acting as resistance or support.
MACD line had a bullish cross-over on 18th October and it has remained above the signal line since then, with the breach of the ascending triangle on the cards for Ethereum.
4-Hour Price Chart
On the 4-hour price chart, Ethereum exhibited a falling wedge pattern which is characterized by formation of higher lows meeting the wedge at $197.50, $187.85 and $175.31. Lower lows met the wedge at $179,36, $173.18, and $170.87. Falling wedge pattern is often followed by a bullish price breakout, thus Ethereum might see a bullish price breakout in the short term.
MACD line had a bullish cross over, which suggested that the market sentiments were bullish in the short term.
Ethereum looked set for a bullish burst on both 1-hour and 4-hour price chart with the formation of two patterns, where a breakout from these patterns are often in green. MACD indicator confirmed the bullish sentiment in the market.