Ethereum Major Breakout Confirmed, Targeting $7800Ethereum has just confirmed a major breakout above a critical resistance zone, signaling a strong bullish continuation. Here's the detailed breakdown:
1.Ascending Triangle Breakout:
ETHUSD had been consolidating within an ascending triangle pattern since late 2024, with the upper resistance around $4000 and a rising support trendline (highlighted in yellow).
The breakout above $4000 on high volume confirms the bullish pattern, often a precursor to significant upward moves.
2. Accumulation Zone:
Prior to the breakout, ETH spent several months in an accumulation zone between $2000 and $4000. This phase allowed buyers to build positions, setting the stage for the current rally.
3. Price Targets:
The measured move of the ascending triangle (height of the pattern) projects a target around $7800. This is calculated by taking the height of the triangle (from the base at $2000 to the resistance at $4000, which is $2000) and adding it to the breakout point ($4000 + $2000 = $6000). However, considering the momentum and historical price action, the next psychological level at $7800 seems achievable.
4. Support Levels:
The previous resistance at $4000 now acts as strong support. If ETH pulls back, this level should hold to maintain the bullish structure.
Additional support lies around $3000, aligning with the 50-day moving average (not shown but inferred from typical setups).
5. Momentum Indicators:
While the chart doesn’t display specific indicators like RSI or MACD, the sharp upward move suggests strong momentum. Traders should watch for overbought conditions on RSI (above 70) as ETH approaches higher levels, which could signal a potential pullback.
