Ethereum has continued to make higher lows since its massive crash that sent the crypto to a swing low of $1,732, wiping out 60% of its gains. Although ETH is still in price recovery, the current price structure indicates that Ethereum ETH is ready for a breakout.

Ethereum's price has reclaimed almost 50% of its losses from its deep plunge under $2,000 on May 23. Speculation looms of ETH price showing signs of capitulation as the network has seen a spike in exchange inflow.

According to behavioral technical analytics firm Santiment, it is not uncommon for large inflows of tokens sent to exchanges preceding rapid price growth.

Ethereum ETH price primed to breakout

On the 12-hour chart, ETH price appears to be forming an ascending triangle, forming a horizontal trend line drawn along the swing highs, and a price rising trend line established by connecting the swing lows. 

Ascending triangles pattern are considered to be a bullish formation that usually indicates accumulation. As the pattern develops, the trade volume contracts until a potential breakout occurs. 

The upside target of the bullish pattern is calculated by measuring the widest distance of the pattern and adding it to the horizontal trend line level. The measured move of a potential breakout for ETH is 30%, reaching a price of $3,810. This Ethereum ETH price point coincides with the 78.6% Fibonacci extension support level, adding credence to the bullish thesis. 

The Bollinger Bands channel squeeze could also indicate that Ethereum ETH is anticipating a large price move. 

Now, the 50 twelve-hour moving average acts as a critical resistance level for ETH, and a break above this support level could galvanize investors’ interest, adding fuel for a potential rally. Failure to sustain above this price level could shift ETH price action to continue trading sideways. 

ETH bulls must also wait for an escape above the horizontal trend line at a price of $2,936, and a spike in trade volume before a rally to the upside can be confirmed.

Speculators must take note of the 200 twelve-hour moving average as this support level is currently acting as critical support for Ethereum, as it correlates with the ascending trend line level that forms the triangle. A break below this line of defense could see Ethereum ETH free fall to below $2,000 once again, dipping to its demand support barrier, ranging from $1,732 to $1,939.

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