Ethereum is forming classic bullish patterns on shorter charts against the US dollar and its main crypto competitor.

Native Ethereum token, Ether
Ethereum

tick Tock
1296 dollars

Looks poised to strengthen against the US dollar and bitcoin
BTC

tick Tock
$17,317

A few days before moving to Proof-of-Stake in September.

Uptrend on ETH price chart
The bullish outlook comes from the classic technical indicators on the ETH/USD and ETH/BTC charts. For example, ETH/USD is forming a falling wedge with a profit target of around 30% above current prices.

Meanwhile, the ETH/BTC chart is drawing a potential bull flag that could boost the price by around 10% from current price levels when resolved.

Here’s how these bullish setups can happen.

Will Ethereum hit $2,000 next time?
Descending wedges are formed when the price moves down inside a descending and contracting channel.

Falling wedge drawing. Source: New Trader U
They are usually resolved after price breakouts above the upper trend lines. Breakout targets are equal to the maximum distance between the upper and lower trendlines measured from the breakout point.

The price of ETH has been falling in the form of a falling wedge since mid-August. It has recently bounced back from testing the lower trendline of the structure to reach the upper trendline and now a breakout of $2,000 or above awaits as shown below.

ETH/USD daily chart with a falling wedge breakout setup. Source: Trading View
The wedge’s profit target is in line with Ethereum’s 200-day exponential moving average (200-day EMA; blue wave) at $2,055.

Moreover, the target looks like a crossroads as ETH awaits a long bull run towards $2,500. This level is the upper target of the wide up channel (purple range) that has formed since June.

In other words, the price of ETH could rise anywhere from 30-55% in September.

ETH/BTC Bull Flag Setting
Bullish flags occur when price consolidates within a descending parallel channel after a strong upward move.

Bull flag drawing. Source: Think Markets
The pattern dissolves after the price breaks above the upper trendline, followed by a sustained upward move of a length equal to the size of the previous uptrend, also called the flagpole. As a result, analysts refer to bullish flags as “bullish continuation patterns.”

Ethereum has been forming a bull flag against Bitcoin since the beginning of August and awaits a breakout as it tests the structure’s upper trendline one by one. Assuming that happens, the price could rally to 0.087 BTC, which is about 10% higher than the August 3 price.

ETH/BTC daily chart and bull flag breakout setting. Source: Trading View
Alternatively, ETH/BTC could reverse to retest the lower trendline of the flag. This trendline seems to coincide with the intersection of the support formed by the 50-day EMA (red wave) and the 0.618 Fibonacci line at 0.0729 BTC.

Related: Ethereum miner balance hits highest weeks in four years before merger

A pullback will not invalidate the bull flag breakout setup unless the price drops below the lower trendline. But if it falls, ETH/BTC risks falling to 0.088 BTC, a level synchronized with the 0.5 Fibonacci line and the 200-day EMA (blue wave).

The views and opinions expressed here are those of the author alone and do not necessarily reflect those of Cointelegraph.com. Every investment and trading step involves risk, you should do your own research when making a decision.

Source: CoinTelegraph

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