Ethereum eyes a breakout, and bulls could be preparing to pounce in
Ethereum remains intact at above $1,000 despite hot inflation numbers
The price gained by double digits on Friday
Ethereum has formed inside bars and is gearing for a breakout
Ethereum ETH/USD remains in a bear market despite double-digit gains on Friday. However, Ethereum lovers have something to be optimistic about its price.
Ethereum has kept the $1,000 level intact. This is good news considering that the cryptocurrency was weighed by the inflation data on Wednesday. At the current $1,198, Ethereum is still pushing higher. A higher than expected 9.1% inflation jump rattled markets. At the very least, cryptocurrencies were expected to remain suppressed due to high inflation. The latest gains in Ethereum confirm that investors are developing a thick skin. It means that the cryptocurrency has somewhat started to price in the high inflation environment.
We cannot confirm that Ethereum is bullish after the latest gains. However, we believe the cryptocurrency is heading for a major breakout. The breakout will usher in a bullish era and end speculations of a potential slump to as low as $700. The chart below reveals it all.
Ethereum forms inside bars at key support
Source – TradingView
On the weekly chart, Ethereum has formed multiple inside bars at minor support of $1,000. The inside bars are a communication of market indecision. However, we are drawn to the fact that Ethereum has been in a bearish market. The indecision is a potential indication of bear exhaustion and entry of buyers. Furthermore, the price has been gaining, suggesting a potential bullish reversal.
A potential breakout of the inside bars from the mother bar will make Ethereum bullish. The breakout will occur at around $1,440, allowing ETH to reclaim another support.
Concluding thoughts
Ethereum’s breakout of the inside bar pattern will confirm a bullish reversal. Buyers will be safe buying at around $1,440, which will be the support after the breakout.
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