• Ethereum's ascending triangle pattern suggests a potential rally to $3,273 if it breaks above key resistance.

• Failure to hold support at $2,640.55 could lead Ethereum to target a downside of $2,089.

• Ethereum's RSI at 33.76 indicates bearish momentum, but nearing oversold conditions might signal a potential rebound.

Ethereum (ETH) is currently forming a large ascending triangle pattern against the US Dollar (USDT) on the one-hour timeframe. This pattern, a common bullish indicator, is characterized by a series of higher lows and a horizontal resistance level. The price action suggests a critical point for Ethereum, as the market approaches a key resistance zone that could determine its next move.

https://twitter.com/TheMoonCarl/status/1823329315573899574 Key Support and Resistance Levels

The chart highlights a notable resistance area, depicted in green, where Ethereum’s price has repeatedly struggled to break above. This level is crucial for the market, as it often signals potential reversals or continuation patterns. 

Below, a yellow horizontal line marks a strong support level, where the price has previously bounced, indicating it as a zone of defense. The interplay between these support and resistance levels will likely dictate Ethereum’s direction in the near term.

Source: The Moon on X

Target Levels Indicate Market’s Next Moves

Ethereum’s price action within the ascending triangle points to two potential outcomes. If the price manages to break above the resistance zone, it could rally towards an upside target of $3,273. 

Conversely, a failure to hold the support level might lead to a decline, targeting $2,089. With the current price hovering around $2,640.55, just below the resistance, the market is at a pivotal decision point, making the next moves crucial.

Market Sentiment and Technical Indicators

Analyzing the broader market sentiment, Ethereum’s market capitalization stands at approximately $319.326 billion, a decline of 2.48%. The Relative Strength Index (RSI) is currently at 33.76, indicating bearish momentum but nearing oversold conditions. 

Source: TradingView

Meanwhile, the Moving Average Convergence Divergence (MACD) remains in negative territory, with a slight upward movement in the histogram suggesting decreasing bearish momentum. 

These indicators suggest that while the market sentiment remains bearish, there is potential for a reversal if oversold conditions trigger a rebound. Ethereum’s price action, supported by key technical indicators, points to a critical moment where a breakout or breakdown could shape its immediate future. 

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