In a new tweet, veteran trader Peter Brandt corrects the erroneous assumption of an ascending triangle trend on the Ethereum (ETH) chart.
Some chartists, particularly novice ones, assume that an intriguing pattern found for Ethereum is an ascending triangle, which is not the case, according to Brandt.
It should be borne in mind that market analysts rely on a variety of technical indicators to forecast future trends, one of which is the widely used ascending triangle chart pattern.
An ascending triangle emerges when the price consolidates between a rising trendline support and a horizontal trendline resistance.
Typically, the pattern develops during long-term uptrends or downtrends. Most technical experts regard it as a "continuation pattern," implying that the overall market trend will most likely restart.
Instead, Brandt highlights a wedge pattern on the Ethereum price chart, which is defined by converging trend lines connecting the corresponding highs and lows of a price series.
A wedge, on the other hand, frequently predicts a price reversal. According to Brandt, the correct starting point for this intriguing pattern was the August 2022 high, and not the April 2022 high. Brandt adds that the April 2022 price action was rather part of the preceding bear trend.
Ethereum jumped to a high of $2,448 in today's trading, its highest level since May 2022. At the time of writing, ETH had slightly retreated from this high, albeit still up in the last 24 hours. ETH was up by 1.47% in the last 24 hours to $2,364, per CoinMarketCap data.
If the bulls keep pushing, Ethereum might reach $3,000. A breach below $2,200, on the other hand, may cause the price of ETH to fall to lower levels. As a result, the bulls must continue to defend this level, as a dip below it may trigger a further downturn to $1,900 and perhaps $1,750.