Ethereum is consolidating below $2700, with trading volume possibly supporting its breakout above $4000.

Gate News bot news, Ethereum is consolidating below a key resistance level, maintaining its bullish structure. If the Trading Volume supports a breakout, ETH could surge towards $4,000 in the next strong pump.

The current price trend of Ethereum is forming a bullish continuation pattern below the 2,700 USD resistance level. The market has shown strength after recent oscillation lows, with prices compressing to create a confident breakout pattern. This structure indicates that momentum is strengthening, but confirming this will depend on the price's reaction at this major level.

The key technical points are as follows: $2,700 resistance level: ETH is consolidating below this resistance level which has been maintained for several weeks. Ascending triangle pattern: a bullish pattern formed by continuously rising lows pushing towards a flat resistance level; Bullish market structure: consecutive higher highs and higher lows remain unchanged, indicating a strengthening market.

In the past few weeks, the price of Ethereum has been consolidating below the $2,700 mark. This area is significant because there is limited historical resistance above it, opening the door for a rapid breakout into the $4,000 region. The current ascending triangle pattern is formed by rising lows pushing towards a flat resistance level, which typically indicates the continuation of a bullish trend.

This structure echoes Ethereum's previous breakout patterns, where significant directional fluctuations occur only after being long suppressed below key resistance levels. Historically, ETH tends to accumulate pressure over time and then release that pressure in high-momentum breakouts.

It is worth noting that sellers have repeatedly failed to push the price below the trend line, which reinforces bullish sentiment. Continuous accumulation near the resistance level usually indicates that smart investors are preparing for greater volatility.

One key signal to pay attention to is the Trading Volume. A decline in Trading Volume during consolidation indicates that the market is consolidating and preparing for expansion. However, the Trading Volume must rebound at the time of the breakout to validate this trend. Attempting to break out in the case of weak Trading Volume may increase the risk of false breakouts or bull traps. Nevertheless, the strong momentum rebounding from recent low volatility supports the view that an important bottom has already formed.

Source: crypto.news