Ethereum Triangle Breakout: A Path to Prices Over $24,000

Ethereum is approaching a crucial period that could lead to significant long-term price growth. A TradingView analyst suggests that despite short-term weaknesses, Ethereum is well-positioned for a substantial upward movement. If the current formation unfolds as anticipated, this could lead to Ethereum’s price soaring above $24,000.

Key Takeaways

Ethereum's long-term price trend has remained intact since 2020.
The asset is forming a large ascending triangle, a pattern that typically precedes a price breakout.
Holding above the $1,000 support level is essential for bullish momentum.
A confirmed breakout could see Ethereum reach upwards of $24,000, reflecting a potential 300% increase.
Increasing institutional interest and stablecoin transactions bolster Ethereum's long-term outlook.

Ethereum Price Drifts Lower

Ethereum’s Long-Term Structure Remains Resilient

A deeper look reveals that Ethereum has maintained its long-term trend, which has been consistently upward since 2020. The ongoing price action shows higher highs and suggests that the long-term framework is still solid. Instead of indicating failure, the extended consolidation seen in recent years is seen as a phase of stabilization within a defined trading range.

This trading range is delineated between $1,000 and $3,000, with the $1,000 mark serving as a crucial psychological and structural support level. According to the analyst, Ethereum's ability to stay above this zone is vital for the bullish outlook. As long as Ethereum maintains its position above this level, it can continue forming a significant ascending triangle, a pattern known for leading to strong continuation moves once finalized.

Ethereum price
Source: TradingView

Within this triangle, the analyst identifies a distinct series of internal price phases. Two primary sections of the triangle have already formed, and Ethereum is moving through the final phase necessary to complete this setup. While this phase has produced some short-term bearish signals, they are considered part of the broader structure rather than a breakdown.

As the price nears the triangle's lower edge, multiple layers of support converge in this area. This includes an upward-sloping trendline and critical moving averages that have previously provided support to Ethereum's price. The analyst expects stabilization and a potential bounce in this zone, assuming Ethereum does not breach the triangle's lower boundary. If it were to do so, the formation would be invalidated; however, the current situation indicates that risks are manageable.

The Implications of a Breakout Toward $24,000

The bullish perspective relies heavily on confirming the triangle's formation. Once the triangle is fully established and Ethereum breaks through the upper boundary, the analyst anticipates a continuation movement to follow. Given the size of the formation and historical market behavior, this movement could be approximately a 300% increase from current levels.

When applied to Ethereum's existing trading range, this could position the primary bullish target at over $24,000. It's important to note that this is not a short-term price prediction, but a potential outcome of a multi-year structure that is poised to resolve in an upward direction.

Additional supporting factors strengthen this forecast. Ethereum is experiencing growing institutional interest, and recent data shows that stablecoin transaction volumes on the network have surpassed $8 trillion. These trends indicate an increasing reliance on Ethereum's infrastructure, which could facilitate sustained price growth following a confirmed breakout.

In conclusion, the analyst believes that Ethereum's next significant price movement will largely depend on the outcome of this current consolidation phase. If the structural integrity holds and a breakout is validated, the path toward prices above $24,000 may become a routine expectation rather than an exceptional event.

Ethereum price chart from Tradingview.com
ETH price remains low as momentum slows | Source: ETHUSDT on Tradingview.com