Ethereum’s 5-year triangle formation is tightening, with a potential breakout pointing to a major upside similar to prior historical moves.
Monthly MACD is flipping bullish for the first time in 18 months, just as it did before strong rallies in 2020 and 2023.
With RSI mid-range and ETH/BTC gaining strength, the setup suggests Ethereum could lead the market with aggressive upside from current levels.
Ethereum is experiencing an indication of a significant movement as its technical arrangement becomes narrow in the long run. The monthly chart indicates an increasing upsurge, which is a prediction of the bullish rally in the short term.
5-Year Triangle Pattern Signals Imminent Breakout
According to crypto analyst Sykodelic_, Ethereum ($ETH) is trading within a five-year triangle on the monthly chart. This extended consolidation seems to be at a turning point. History supports that sort of technical backdrop often comes before big upswings.
https://twitter.com/Sykodelic_/status/1945877923623522427
The structure has limited downside volatility, suggesting increasing price compression. A breakout from such a prolonged triangle typically leads to aggressive moves. The current market positioning shows Ethereum approaching the upper resistance of this formation. If breached, it could open up room for sharp price expansion.
Past triangle breakouts on Ethereum have led to multi-month rallies. Technical patterns from 2020 and 2023 support this projection. In both instances, Ethereum surged strongly once the pattern resolved upward.
Monthly MACD and RSI Build Bullish Case
The MACD in the one-month timeframe is about to go bullish. It would be the first time in 18 months in which the indicator would turn green. In past cycles, similar MACD crossovers preceded prolonged upward movements.
In 2020, the bullish MACD shift led to a 16-month rally. In 2023, a similar setup saw Ethereum advance for six months. The repeating nature of this signal could reinforce investor confidence.
Relative Strength Index (RSI) readings are also supportive. Currently, the monthly RSI remains at mid-range levels. This suggests that Ethereum still has enough room to rally before approaching overbought conditions. The current positioning reflects neutral momentum with upside potential.
These converging signals may strengthen Ethereum’s technical outlook, especially as longer-term momentum realigns with buyers.
ETH/BTC Ratio and Bitcoin Dominance Support Ethereum Strength
Further support for Ethereum’s upward bias is derived from inter-market metrics. According to Sykodelic, the Ethereum to Bitcoin ratio (ETH/BTC) is showing signs of strength. At the same time, Bitcoin Dominance (BTC.D) appears to be losing steam.
The combination of weakening Bitcoin dominance and a strengthening ETH/BTC ratio adds further confluence to Ethereum’s case. Historically, this dynamic has marked a phase where capital flows into altcoins, with Ethereum often leading the charge.
With multiple technical factors aligning, some market participants believe Ethereum could target five-digit prices. Sykodelic notes that a move to $10,000 and beyond is not an exaggerated target if these breakouts play out as expected.
As the crypto market watches closely, Ethereum’s monthly structure, momentum indicators, and inter-market signals present a compelling chart-driven narrative.
The post ETH Eyes $10K as 1M MACD Flashes Bullish and 5-Year Triangle Nears Breakout appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
