Ethereum Price Bullish Diamond Pattern Signals Breakout

Ethereum price seems to be in good standing as technical indicators suggest an upward move is possible. The top altcoin is currently confined within an ascending triangle pattern, which might mean a surge is forthcoming.

In the world of cryptocurrency, technical analysis plays a crucial role in deciphering market trends and making informed trading decisions. As the price of Ethereum seems to be in good standing and technical indicators suggest an upward move might be possible. The top altcoin is currently confined within an ascending triangle pattern, which might mean a surge is forthcoming.

As revealed by Mikybull Crypto, a crypto trader and analyst known for spotting technical patterns, a diamond pattern has formed on the chart of Ethereum (ETH). This pattern is a reversal structure that, when broken down, signals a shift in momentum and a continuation of the prior trend. In this instance, it suggests upward movement for the second-largest cryptocurrency.

“The bullish diamond pattern has fully formed and a breakout could see an acceleration toward the upside.”

A recent analysis from Mikybull Crypto highlights the formation of a bullish diamond pattern on Ethereum’s chart. This technical setup suggests that the asset is nearing a turning point, where a breakout could trigger upward momentum.

Having been trading in a narrowing range, the crypto’s price has created conditions that often lead to a breakout. If buyers push the price above key resistance levels, the asset may see an accelerated move higher.

Meanwhile, earlier analysis from another crypto trader, Wojteksy, highlighted that the altcoin price breaking below $3,300, the Fib 0.382 level, could accelerate its decline toward $1,250, the Fib 0.236 level.

The surge in Ethereum ETF outflows and heavy liquidations in the derivatives market further reinforce the bearish outlook. However, large Ethereum whales have accumulated 330,000 ETH, hinting at possible future recovery.

Next Major Resistance Levels That Could Confirm Breakout

Moreover, Ethereum price is facing crucial resistance at the $3,800 level, a zone that has capped price advances in recent sessions. A decisive breakout above this point could confirm the bullish diamond pattern and open the door for further gains.

The next major resistance is at $4,150, a level that aligns with historical price action. A move past this threshold would reinforce buying interest and set Ethereum on a path toward its all-time high.

On the downside, failure to break above resistance may invalidate the bullish setup, leading to possible retracement toward $3,500.

More so, analyst Ali Martinez highlights that Ethereum is currently consolidating within a descending triangle, a pattern often associated with bearish continuation. If the top altcoin breaks below the lower support, a sharp decline could follow, while an upward breakout may trigger an 18% rally.

At the time of writing, Ethereum price is $3,908.64, which is 3% down in the last 24 hours. However, the altcoin trading volume increased by 162%, reaching $28,94 billion, signaling that users’ interest is still high.