With ethereum’s September merger upgrade looming , ether’s upward momentum is clearly stronger than that of the dollar and bitcoin. A bullish outlook has emerged from the classic technical indicators of ETH/USD and ETH/ BTC. For example, Ethereum has formed a falling wedge pattern against the US dollar, and the profit target is about 30% higher than the current price.
Meanwhile, the ETH/BTC technical chart is forming a possible bullish flag pattern that could send BTC prices around 10% above current levels.
Ether to $2,000 next?
A falling wedge is formed by two downtrend lines that meet, which is when prices fall within a descending, converging channel.
When prices break above the falling wedge’s upper trendline, their breakout target is as high as the maximum distance between the falling wedge’s upper and lower trendlines .
The price of Ether has been falling in a falling wedge since mid-August, but has recently rebounded after testing the lower to upper trendline of the falling wedge and is now poised to break above or above $2,000 as shown.
The profit target for the wedge is now in line with Ethereum’s 200-day exponential moving average ( blue line on the graph) at $2,055.
Furthermore, the target is clearly a juncture as Ether looks towards a long-term bull market at $2,500. This $2,500 is the overhead target of a larger ascending channel (purple area) that formed from June .
In other words, the price of ether could rise by 30% to 55% in September.
Ethereum/Bitcoin Bullish Flag Pattern Formed
A bullish flag pattern emerges when the price of a currency has experienced a strong rise and then consolidates and falls in a descending, parallel channel .
After the price breaks the upper trendline, the pattern is broken, and it continues to rise by the length of the previous uptrend, the “flagpole”. Analysts describe this bullish flag pattern as a “bullish continuation pattern.”
Ether/Bitcoin has formed a bullish flag pattern since early August, testing the upper trendline and awaiting a breakout. If it does happen, ether could rise to 0.087 BTC, representing a roughly 10% increase from its Aug. 3 price.
However, ETH/BTC could also retest the lower trendline of the bullish flag pattern. This trendline is clearly formed by the confluence of support formed by the 50-day exponential moving average (red line) and the 0.618 Fibonacci line at 0.0729 BTC.
A retracement does not invalidate the bullish flag unless price breaks below the lower trendline. But if it does break, ETH/BTC could drop to 0.088 BTC.
