Ethereum (ETH) is currently trading at approximately $3,240, exhibiting indications of a forthcoming breakout. The formation of a symmetrical triangle on the 1-hour chart signifies a period of low volatility and constricted price movements. Such patterns typically precede a significant price shift in either direction.
Critical Fibonacci levels have emerged, notably $3,293 (0.5), $3,328 (0.618), and $3,379 (0.786). Notably, a full 100% extension indicates a target of $3,317, which is now under close observation by traders. Should ETH break above this triangle, the $3,317 zone may come into play. Conversely, if a downward movement occurs, the next support levels to watch are $3,150 and $3,050.
Recent data from Santiment reveals that approximately 60,000 ETH, valued around $200 million, has been transferred to exchanges within the past day. Such inflows generally suggest that traders are preparing to sell, particularly when there is a sudden increase in exchange activity. The rising total of ETH held on exchanges further supports the notion that some traders may be positioning themselves for potential exits.
Despite these inflows, ETH has managed to maintain its value above $3,240. However, there is a possibility of increased near-term pressure if further selling activity occurs.
On a broader timeframe, ETH is displaying a rounded bottom pattern, reminiscent of the setup seen prior to the last major rally that commenced near $1,385 and peaked around $4,956. Additionally, moving averages are beginning to trend upward, mirroring the indicators observed before that surge. The MACD indicator has also shown a positive shift, with the MACD line crossing above the signal line, a configuration that has historically coincided with momentum gains for ETH.
The current chart pattern presents a balanced scenario, with the triangle indicating that the market is coiling, yet the direction remains unconfirmed. With the price hovering around $3,240 and the significant extension target set at $3,317, traders are closely monitoring the situation for a breakout. A decisive movement supported by volume could catalyze a substantial price adjustment, yet until that occurs, the market remains vigilant.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
