Ethereum
Bitcoin Momentum Is Ready to Power the Crypto Market
- Bitcoin price is stuck between the trendlines of a symmetrical triangle pattern.
- Ethereum price is likely to retreat to its main support zone between $3,400 and $3,200.
- Ripple price is poised to end the 50-day consolidation between $0.467 and $0.571.
Bitcoin (BTC) price is consolidating in a symmetrical triangle pattern, showing a directional bias. Ripple (XRP) is also following in BTC’s footsteps as it continues its 50-day consolidation streak. The price of Ethereum (ETH), on the other hand, is showing signs of an impending correction.
Bitcoin Price Ready for Triangle Breakout
The price of Bitcoin has produced three higher highs and lower lows since May 19. Connecting these swing points using a trendline reveals a symmetrical triangle formation in the 4-hour chart. This technical pattern has no bias, and the target is obtained by adding the height of the triangle to the breaking point.
Assuming BTC triggers a bullish breakout at around $67,700, the height of the triangle sets the target near $73,777, its all-time high.
BTC/USDT 4-hour chart
However, if BTC breaks the triangle’s bullish trendline and closes below $67,700, the bullish thesis could be invalidated, leading to an 8% crash, which is the technical target given by the triangle’s height, to 61 $734.
Ethereum price looks promising
Ethereum price broke out of a descending wedge trend on the 4-hour chart on May 20 and rallied 21%. However, the March 12 bearish order block from $3,980 to $4,093 rejects the ETH price.
Investors wishing to purchase ETH could do so at the following levels:
- At the 50% Fibonacci retracement level taken from the May 27 high of $3,984 to the May 13 low of $2,864 at $3,424.
- At the 61.8% Fibonacci retracement level of the same move to $3,279.
If the conditions mentioned above must be met, then the Ethereum Price could revisit its previous resistance level at $4,000.
ETH/USDT 4-hour chart
On the other hand, if the daily Ethereum candlestick price closed below the $2,864 level, it would produce a lower low and signal a break in the market structure. This move would invalidate the aforementioned bullish thesis, potentially triggering an additional 9% crash from the previous support level of $2,600.
Ripple price to end consolidation phase
Ripple price is currently consolidating between $0.571 and $0.467 after a significant 33% decline in mid-April. This 49-day consolidation saw XRP volume weaken.
If Ripple price breaks above $0.571 and the 50% Fibonacci retracement level from the March 11 high of $0.744 to the April 14 low of $0.419 at $0.581, it could rebound by 8% to return to the 61.8% Fibonacci retracement at $0.621.
XRP/USDT 4-hour chart
However, if the daily Ripple candlestick close below $0.467, then XRP could accident an additional 10% from its previous support at $0.419.