{"id":40420,"date":"2025-01-30T18:30:37","date_gmt":"2025-01-30T18:30:37","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=40420"},"modified":"2025-01-30T18:30:37","modified_gmt":"2025-01-30T18:30:37","slug":"ethereum-price-forms-falling-wedge-pattern-on-1-day-chart-that-suggests-20-rally-is-coming","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=40420","title":{"rendered":"Ethereum Price Forms Falling Wedge Pattern On 1-Day Chart That Suggests 20% Rally Is Coming"},"content":{"rendered":"

Ethereum\u2019s price action is showing signs of an impending breakout <\/a>as it moves back and forth within a falling wedge pattern on the daily candlestick time frame chart. According to an analysis first posted on the TradingView platform<\/a>, this formation is a strong bullish signal that could push the Ethereum price toward $3,800 if history repeats itself.\u00a0<\/p>\n

The falling wedge, which is generally known to be a bullish price action structure, is developing between the 50-day and 200-day moving averages for Ethereum, in line with a similar pattern from that preceded an Ethereum price rally last year.<\/p>\n

Ethereum Repeating Falling Wedge Pattern<\/h2>\n

Ethereum has largely underperformed this cycle <\/a>without any clear breakout yet. Furthermore, the cryptocurrency has yet to recover towards its 2021 all-time high unlike many of its other crypto counterparts <\/a>with large market caps.\u00a0<\/p>\n

Technical analysis of the current Ethereum price action shows that the leading altcoin has been trading in a decline since the beginning of the year. This decline has been characterized by the formation of lower highs and lower lows,<\/a> which is quite like a falling wedge pattern. What\u2019s very interesting is that this wedge pattern on the Ethereum price chart is developing between the 50-day and 200-day moving averages, which makes it even more peculiar.<\/p>\n

The TradingView analyst highlighted that the current falling wedge price structure mirrors the March 2024 pattern, which saw Ethereum forming a triple bottom before breaking out and reaching the 0.786 Fibonacci extension level. If the same scenario unfolds, the current falling wedge could serve as a launchpad for a price surge towards a target at the $3,800 level. This represents a potential 20% upside from Ethereum\u2019s current trading range.<\/p>\n

Resistance Levels Could Delay the Rally<\/h2>\n

At the time of writing, Ethereum is trading at $3,180, up 1% in the past 24 hours. This marks a steady climb from <\/a>the lower end of the wedge pattern, bringing the cryptocurrency closer to breaking above the upper trendline around $3,250.\u00a0<\/p>\n

While the technical setup<\/a> leans bullish after the predicted breakout, it is important to note that Ethereum faces a significant resistance hurdle between $3,400 and $3,500. Sellers positioned at this resistance zone have acted as a strong barrier in recent months, and they have successfully stalled previous attempts by the bulls to push higher.<\/p>\n

If Ethereum fails to break through the upper end of this range, another temporary rejection could occur before any sustained move toward $3,800.<\/p>\n

If Ethereum successfully clears the $3,500 resistance, it could pave the way for a more extended bullish trend, <\/a>with $3,800 as the next logical target. Notably, this $3,800 target reflects a tempered outlook on Ethereum compared to past market expectations, a sentiment shaped by its recent price action. However, if strong bullish momentum builds toward $3,800, it could trigger an even larger push toward the $4,000 mark.<\/p>","protected":false},"excerpt":{"rendered":"

Ethereum\u2019s price action is showing signs of an impending breakout as it moves back and forth within a falling wedge pattern on the daily candlestick time frame chart. According to an analysis first posted on the TradingView platform, this formation is a strong bullish signal that could push the Ethereum price toward $3,800 if history […]<\/p>\n","protected":false},"author":0,"featured_media":40421,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-40420","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/40420"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40420"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/40420\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/40421"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}