Similar to a triangular pennant, it is created when a period of consolidation occurs following a significant price increase, during which the price moves within a narrowing range. This consolidation is determined by converging trend lines, while a breakout above the upper trendline confirms the continuation of the uptrend.
With the altcoin building strength after the breakout, Trader Tardigrade has predicted a rally back to the $2,250 level. A move above the crucial price mark is likely to trigger a prolonged uptrend and attract broader market confirmation.
Trader Tardigrade’s prediction is based on past trends where ETH’s price surged as the stochastic indicator recovered from an oversold zone. As observed in the past, the development occurred 3 times within the last 2 years, triggering over 100%, 169%, and 99% upswings, respectively.
