Ethereum Breaks Bullishly From Consolidation Pattern Despite Economic Concerns: What To Watch

Ethereum ETH/USD was leading the crypto sector slightly higher during Tuesday’s 24-hour trading session, trading up 3.08% at one point despite the S&P 500 falling over 1%.

The move higher by the top cryptos, which saw Bitcoin BTC/USD rising 1%, came as Ethereum and Bitcoin met the apex of triangle patterns, which Benzinga called out on Friday.

Ethereum and Bitcoin also appeared to be ignoring the slightly negative market sentiment amid intensifying discussions on how to avert a debt ceiling crisis, which has a deadline of June 1 fast approaching.

Gold was also trading positively, rising about 0.35% higher, which could be an indication that traders are anticipating a recession later this year.

From a technical analysis standpoint, Ethereum broke up from the triangle on higher-than-average volume, which suggests the pattern was recognized, and a long-term uptrend could be on the horizon.

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The Ethereum Chart: When Ethereum popped higher on Tuesday, the crypto almost reached the 50-day simple moving average and was rejected from the area. Now that Ethereum has broken above the triangle, bullish traders will want to see the crypto confirm a new uptrend by eventually printing a higher low above Monday’s low of $1,791.

• If Ethereum closes Tuesday’s session under the $1,860 mark, the crypto will print a shooting star candlestick, which could indicate lower prices are on the horizon for Wednesday. If that happens, Ethereum could fall to backtest the upper descending trend line of the triangle and reverse course there, which would be bullish.
• If Ethereum drops back under the upper trend line, the area could continue to act as resistance and push Ethereum lower, suggesting the break above the triangle was a bull trap.
• Ethereum has resistance above at $1,846 and $1,957 and support below at $1,717 and $1,564.

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