Ethereum accurately reproduces the structure of Solana, forming a triangle below its resistance level.
Repeated liquidity attraction on ETH could trigger a price surge.
The charts of Ethereum [ETH] and Solana [SOL] reveal a remarkable similarity between the recent price actions of ETH and SOL at the beginning of 2023.
At the beginning of 2023, Solana's price formed an ascending triangle, accumulating below resistance before surging with over 222% momentum.
At the time of reporting, Ethereum is precisely recreating this structure—forming an ascending triangle beneath its resistance level, indicating similar accumulation.
With this correlation, Ethereum may be on the brink of a strong breakout if it follows the path that Solana has experienced.
Source: Trading View
An ascending triangle is often seen as a bullish continuation pattern suggesting that a breakout could significantly push ETH higher. Momentum indicators and trading activity need to align for ETH to achieve comparable gains.
If Ethereum breaks through the current resistance area, it could lead to a strong price surge, targeting similar percentage increases and placing ETH in another significant uptrend.
The RSI and MACD indicators suggest…
Additionally, Ethereum's relative strength index and moving average convergence divergence indicators indicate market potential.
The RSI is hovering near neutral to slightly bullish, indicating that momentum may begin to tilt towards the upside. The MACD chart is showing fading red bars, suggesting that selling pressure may be weakening.
Additionally, the MACD line appears to be approaching a crossover above the signal line, which is a common bullish signal.
Source: X
Overall, these indicators imply that ETH could experience some buying momentum if fundamental factors such as liquidity attraction and on-chain activity increase align with the price pattern.
The impact of liquidity attraction on ETH's price action.
Observing the ETH liquidity heat map clearly shows a familiar pattern: another day marked by strategic liquidity attraction.
Price action continues to reach down to absorb liquidity, forming a series of spikes indicating that market makers and large players are shaking out weaker participants.
The scenario seems ready for ETH to recover after this liquidity attraction, especially with a significant liquidity cluster still near the current price.
Source: Hyblock Capital
These higher liquidity levels act as magnets, making it possible for ETH to move upwards next, targeting these areas. This could allow ETH to achieve a similar 222% increase as SOL.
Traders may expect that ETH, after sweeping through this liquidity, could leverage the restored momentum to climb and capture nearby liquidity pools, leading to potential short-term bullish movement.
Stay tuned for updates.
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