Ethereum Forming a High Tight Pattern. Will it Break Out?
ETHUSD started rallying at the start of last week before pausing below its September peak of $489. Instead of dropping sharply as before, it has squeezed into a . November 8th, 9th and potentially the 10th all have inside candles. But that can’t last forever. With rising, will the pattern resolve to the upside?
Next, we turn to the four-hour chart. Notice how Width is also squeezing into a tight range – very similar to the pattern in BTCUSD before its recent surge to its highest level in almost three years.
Third, ETHUSD recently broke out of an , and held that breakout with a test of the 50-day ( ) on November 3. Remember that ascending triangles are continuation patterns. This one follows the sharp rally in late July, which would point toward a continuation of that direction.
Finally, the Ethereum 2.0 deposit contract launches on December 1 — more than a month earlier than expected. A move like that seems to reflect confidence in the project’s future. The launch’s staking lockup would remove Ether from circulation. (Less supply.) Meanwhile, value locked up in DeFi keeps inching higher and hit a record $12.7 billion yesterday. All those are potential positives on the fundamental front.
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