Ethereum (ETH) Bullish Pennant Alert

11 set

Ethereum continues to show a bullish setup with a long-term bullish pennant pattern forming on the chart. Based on Fibonacci extension levels, we can project both conservative and aggressive price targets, with the potential for a blow-off top around $20,000, aligning with the 200% Fibonacci retracement level.

Key Technical Highlights:
Pattern: Bullish Pennant (Continuation Pattern)
Current Price: ~2.2k-2.3k
Fibonacci Extension Levels:
1.272 Extension: $7-7.5k
1.414 Extension: $7.5-9.3k
1.618 Extension: 10k-13K
200% Retracement: $20,000 (Potential blow-off top target)

Why this setup is promising:
Bullish Pennant: Ethereum’s price consolidation within this pattern suggests a bullish continuation, with Fibonacci levels offering reliable price targets.
Strong Fundamentals: Increasing on-chain activity, network upgrades, and growing institutional interest support the potential for higher price action.
Volume Contraction: Volume has been contracting during the consolidation, a common precursor to a breakout.
Strategy:
Entry: Consider entering on a confirmed breakout above 2.7k with strong volume.
Stop Loss: Below 2k for risk management.

Disclaimer: This is not financial advice. Always conduct your own research before making investment decisions.