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In our previous Ethereum analysis: Ethereum Just Formed This New Converging Triangle Pattern! we talked about the key Triangle Pattern that was forming in the 1-hour timeframe and what it meant for Ethereum in the coming days.
This converging triangle pattern gave us the ability to understand what the market was doing and get ready for a potential breakout either to the upside or downside, ending the ranging/sideways market we have been experiencing on the Ethereum 1-hour timeframe for weeks now.
What Is Ethereum Doing Right Now?
Well, Ethereum is looking like it wants to explode to the upside! But for a bullish breakout like this to occur, the Ethereum price needs to surge through and close above the resistance channel of the converging triangle pattern.
And right now, the ETH price is still battling with this key level. Can we expect to see a bullish breakout soon or will this resistance level hold and push the price back down in the coming days?
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Ethereum Bullish Breakout!
For the Ethereum bullish breakout, we want to see the Altcoin clearly break through and close above the resistance channel of the converging triangle pattern on the 1-hour timeframe.
A bullish breakout like this is the indication we need to confirm the end of the ranging market and the resumption of the ETH uptrend higher.
Our bullish target for this move would be the $4,484 price level. This would be about an 11% surge in the price of Ethereum if it were to play out.
What Happens If This Resistance Channel Holds?
If Ethereum fails to break through this key channel resistance on the 1-hour timeframe, there is a very high probability that we may just see the ETH price continue to form the triangle pattern.
This means a failure to break through could potentially see us selling back down to the base of the converging triangle pattern where we might find support again.
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