Ethereum price wobbles slightly in the red on Tuesday as bulls and bears work out their options from a three-week consolidation. Despite the overall sluggishness of the crypto market, ETH is up 0.9% to $1,877 with a trading volume of $41 billion.
Bitcoin, on the other hand, is up 1.1% to USD 30,500. As reported, investors are looking forward to the release of US CPI data, which analysts believe will shape the market in the coming weeks.
Ethereum Price Awaits Rectangle Pattern Breakout
Ethereum has remained within the confines of a rectangle pattern since June 20, which if validated could lead to a breakout to $2,055.
The bullish rectangle pattern, as shown on the four-hour chart, reveals a pause in an uptrend before Ethereum price resumes its upward movement. This crucial pattern occurs when the price of an asset like ETH moves sideways between two parallel horizontal lines, creating a rectangular shape.
Traders are looking for confirmation of the pattern after the price breaks above the upper resistance line, indicating that buyers have regained control and the uptrend is likely to continue.
The bullish rectangle pattern helps identify potential entry points for their long positions or exit points for their short positions.
It is advisable to include indicators such as volume, moving averages or oscillators to confirm the pattern and gauge the strength of the expected Ethereum price breakout.
Meanwhile, the breakout target equals the width of the rectangle extrapolated above resistance at $1,938 to $2,055.
Four Hour ETH/USD Chart | Trade view
The Moving Average Convergence Divergence (MACD) shows that bulls have the upper hand, and if investors take the call to buy Ether seriously, momentum will build, increasing the likelihood of the rectangle breaking out.
For now, bulls must fight to keep the 100-day exponential moving average (EMA) (line in blue) support intact at $1,877. This gives them plenty of time to consolidate their efforts to tackle the immediate 50-day EMA resistance (in red) at $1,882.
The 100-day EMA and 200-day EMA (in purple) support areas are critical to the resumption of the uptrend, especially with the Money Flow Index (MFI) pointing down from the midline (50).
If the declines surpass the 200-day EMA by $1,861, all eyes will shift to the next buyer’s congestion at $1,800, but support at $1,830 has a chance to absorb the selling pressure. A continued breakout below the rectangle support could see a drop to USD 1,700.
Ethereum Staking Up 18% Since the Shapella Upgrade
The Shapella upgrade allowed investors to withdraw staked Ether on the Beacon chain for the first time since moving to a proof-of-stake (PoS) consensus mechanism.
While analysts initially feared withdrawals would put a lot of pressure on Ethereum price, it has had the opposite effect as investors gained access to their locked ETH, which has jumped 18% since the upgrade.
Ethereum total value staked – Glassnode
According to on-chain data from Glassnode, as the amount of Ether staked increases, the platform’s circulating supply decreases. The ability to put Ether in and out as investors want has boosted investor confidence, especially among those who prefer to grow their wallets in anticipation of the bull market.
Currently, Ether accounts for nearly 21% of Ethereum’s circulating supply. If this trend continues, selling pressure will undoubtedly ease significantly, creating a suitable environment for a rally.
John is a renowned crypto analyst and journalist, providing expert insights into both broad and focused aspects of the digital asset market. As a steadfast reporter, he keeps his audience abreast of the latest crypto news, delving into topics such as price trends, on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the ever-evolving metaverse.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
This post Ethereum Price Make or Break Moment is here with $2,055 tied breakout ahead
was published first on https://coingape.com/ethereum-price-make-or-break-moment-is-here-with-2055-bound-breakout-in-the-offing/