Ethereum Likely to Break Out of Local Consolidation - March 19

Ethereum (ETH), like Bitcoin (BTC), seems to be reaching a point of local decision after a short period of consolidation, starting on 16 March. Trading against USD (or USDT), ETH looks to have formed a bull flag or pennant.

eth19mar1.png(source: TradingView.com)

A fallout from this pattern would not, however, be completely disastrous, as there is still a decent cushion of support from $136 all the way to $132 - where the local uptrend support is held (green, below). A break from that uptrend, however, could mean a break of this market structure and a return to low $120’s.

eth19mar2.png(source: TradingView.com)

Ultimately, on a larger daily timeframe, ETH finds itself - again like Bitcoin - in a giant ascending triangle pattern. Specifically, the ETH trend lies in the middle of that larger consolidation. The region between $155 and $160 has already been tested twice. A full completion of this pattern would drive into the latter half of the year (see below).

eth19mar3.png(source: TradingView.com)

If and when Ethereum does manage to break its $160 top, the next stop on the uptrend train is the zone around $175 - slightly less dense than the knot waiting at $200+.

eth19mar4.png(source: TradingView.com)

CryptoGlobe reported yesterday on Ethereum founder Vitalik Buterin’s new considerations of implementing zk-SNARKs on the smart contract platform. Eventually, a daunting 27,000 (private) transactions per second could be possible, when zk-SNARKs are applied to sharding Ethereum 2.0, Vitalik suggested.

The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.