Ethereum's market structure on the 4-hour chart continues to paint a predominantly bullish picture, suggesting the potential for a significant upward move in the near term. The foundation of this optimism is built upon a clear sequence of higher highs and higher lows, the quintessential characteristic of a healthy uptrend. This pattern indicates that buyers are consistently stepping in at elevated levels, demonstrating sustained demand and pushing the price to new local peaks with each successive wave.
However, this bullish primary trend is currently experiencing a counter-trend consolidation, manifesting as a descending triangle formation. This pattern typically forms when the price meets consistent resistance around a specific level (in this case, forming a flat top), while the pullbacks become progressively shallower, creating a descending trendline for the lows. Crucially, the formation of this pattern within a larger uptrend is often interpreted as a bullish continuation pattern rather than a reversal.
Supporting this thesis is a noticeable decline in selling pressure, as evidenced by weakening volume on the downward swings within the triangle. This suggests that bears are losing conviction, allowing the market to absorb supply efficiently. The convergence of these factors implies that the secondary corrective trend (the consolidation) is likely concluding, paving the way for the primary bullish trend to resume its dominance.
A decisive breakout above the triangle’s upper resistance could trigger a powerful move north. In such a scenario, Ethereum has a clear upside target projected around the $4850 region. Conversely, should a temporary pullback occur, the key support level to watch is near $4050. A hold above this level would keep the broader bullish structure intact, while a break below could signal a longer and deeper period of consolidation.
However, this bullish primary trend is currently experiencing a counter-trend consolidation, manifesting as a descending triangle formation. This pattern typically forms when the price meets consistent resistance around a specific level (in this case, forming a flat top), while the pullbacks become progressively shallower, creating a descending trendline for the lows. Crucially, the formation of this pattern within a larger uptrend is often interpreted as a bullish continuation pattern rather than a reversal.
Supporting this thesis is a noticeable decline in selling pressure, as evidenced by weakening volume on the downward swings within the triangle. This suggests that bears are losing conviction, allowing the market to absorb supply efficiently. The convergence of these factors implies that the secondary corrective trend (the consolidation) is likely concluding, paving the way for the primary bullish trend to resume its dominance.
A decisive breakout above the triangle’s upper resistance could trigger a powerful move north. In such a scenario, Ethereum has a clear upside target projected around the $4850 region. Conversely, should a temporary pullback occur, the key support level to watch is near $4050. A hold above this level would keep the broader bullish structure intact, while a break below could signal a longer and deeper period of consolidation.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.