Ethereum tests triangle resistance near $2,480 after reclaiming its 100-day SMA; a breakout puts $2,900 in focus.
Ethereum is nearing a key chart level after weeks of steady recovery. The asset is testing the upper edge of an ascending triangle on the daily chart.
At the same time, traders are watching the $2,480 level for a possible breakout. A daily close above that mark could shift focus toward $2,900.
Ethereum Nears a Key Chart Barrier
Ethereum has climbed from its recent base near the $1,800 to $2,000 area. Since then, the chart has shown higher lows and firmer demand.
As a result, price has returned to the $2,350 to $2,400 zone. That zone has acted as resistance during recent attempts to move higher.
Buyers have kept pressure on the market, but the ceiling remains in place. For now, the triangle pattern is still active and unresolved.
An ascending triangle often forms when buyers keep lifting support levels. Meanwhile, sellers continue to defend one main resistance area.
That setup can lead to a breakout, but only after resistance gives way. The latest move has again placed Ethereum near the top of that range.
Because of that, traders are focused on how the daily candle closes. A firm close above resistance would change the near-term chart structure.
Trend Indicators Show Steady Strength
Ethereum is also trading above the three Alligator lines on the daily chart. The green line sits near $2,258, while the red line is near $2,217. The blue line is near $2,180.
Ethereum tests resistance near $2,480, source: TradingView data from Bitstamp.
Price above all three lines usually points to stronger trend control by buyers. In addition, the lines are starting to open upward.
That often suggests the market is moving out of consolidation. The recovery has also pushed Ethereum back above its 100-day simple moving average.
That move has supported the view that buyers are still active. Even so, the market has not yet cleared the main breakout level.
Momentum readings remain positive as well. The MACD line is above the signal line and above zero.
That setup shows buying pressure remains stronger than selling pressure for now.
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Sell Signal Keeps Traders Alert Near $2,480
Despite the stronger trend, one warning remains on the chart. The TD Sequential is flashing a sell signal near resistance.
The same reading appeared during the last move toward $2,400. That earlier signal was followed by a pullback toward support.
Because of that, some traders may remain cautious near current levels. However, the broader setup now looks stronger than it did during that prior test.
One analyst said, “I’m looking for a daily close above $2,480.” The analyst added that such a move could invalidate the bearish signal. It could also confirm the triangle breakout on the daily chart.
If Ethereum closes above $2,480, attention may shift toward the $2,900 area. On the other hand, failure there may bring support back into focus.
The first support sits near $2,258, followed by $2,217 and $2,180. For now, the market is approaching a clear decision point.
Buyers have improved the structure, and momentum remains positive. Still, resistance has not broken, so the next daily close may guide the next move.
Source: https://www.livebitcoinnews.com/ethereum-tests-triangle-resistance-as-bulls-eye-breakout-above-2480/
