Ethereum ETH price is forming a bullish consolidation pattern level that hints at a rally toward the all-time highs. However, ETH must clear critical resistance present in between the current position and the target.
Ethereum ETH price has set up three equal highs since May 20 while creating three lower lows. An ascending triangle pattern level forms when these swing points are connected using trend lines.
This setup forecasts a 40% upswing to $4,100, determined by measuring the distance between the first swing high and low and adding it to the breakout point at a price of $2,916.
Therefore, Ethereum's price needs a decisive 4-hour candlestick pattern close above $2,916 to signal a bullish breakout.
It is likely the lows at a price of $2,527 will be swept before Ether moves higher. This downswing will either come after the horizontal resistance is broken or before it. Either way, investors should expect the recent swing low to be swept before the price bull rally manifests itself.
For the ETH price to hit its intended target, it has to slice through the supply zone extending from between $3,315 to $3,441.
If Ethereum ETH price fails to surge past the initial supply zone, extending from $2,689 to $2,889, the upswing will be unconfirmed. Under these circumstances, if the ETH price shatters the support level at $2,275, it will invalidate the bullish outlook.
The second point of failure would be a breakout above the price of $2,916, followed by an inability of the buyers to keep the smart contract token higher. If the resulting downward move slices through $22,75, the ETH price is likely to consolidate here or head to the demand zone present under it.
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