The recent breakout in the Ethereum price has sparked excitement among investors, with the cryptocurrency finally breaking out of a months-long consolidation pattern. This breakout from an Ascending Triangle formation is seen as a bullish signal, signaling the potential start of a significant upward move. A crypto analyst has even set a price target of $7,800 for Ethereum in the coming months.
Ethereum has been trading within an Ascending Triangle pattern for months, with strong resistance at $4,000. This consolidation pattern has been in place since late 2024, indicating a period of accumulation where buyers quietly built their positions. Analyst Sohaibfx predicts that a breakout above $4,000 would confirm a bullish trend for Ethereum, leading to a strong upward price movement.
A descending channel marked on the price chart shows that Ethereum experienced a significant pullback in mid-to-late 2024 before breaking out. This pullback likely served as a final shakeout before the cryptocurrency regained its bullish momentum. The measured move of the Ascending Triangle suggests that Ethereum could surge by 333% to reach $7,800, a key psychological level.
Support levels at $4,000 and $3,000 are identified as crucial levels to watch, with buyers expected to step in to prevent further decline after Ethereum reaches its projected target. Strong momentum indicators are also highlighted, with RSI levels above 70 signaling potential overbought conditions that could lead to a pullback.
In conclusion, the Ethereum price breakout has set the stage for a potential rally towards $7,800, with key support and resistance levels to watch. Traders are advised to monitor momentum indicators closely as Ethereum continues its upward trajectory towards a new all-time high.