On the technical charts, Ethereum (ETH) has managed to break past the upper trendline of the Falling Wedge pattern. This sets a bull case scenario for a bounce up to $2,500.
Speaking at the B-Word conference on Wednesday, July 23, tech billionaire Elon Musk confessed to owning Ethereum (ETH). This was enough to bring Ethereum out of the abyss and on a northward journey.
Since Musk’s comments, the Ethereum (ETH) price is up 15% breaking past its crucial resistance of $2000. At press time, ETH is trading 3.5% up at a price of $2062 and a market cap of $241 billion. The ETH price surge followed the Bitcoin (BTC) price surge.
Musk commented that the Bitcoin mining community has initiated significant efforts to move towards clean energy. Thus, Tesla could possibly reconsider the option to offer BTC payments.
Lukas Enzersdorfer-Konrad, chief product officer at financial services company Bitpanda noted that Ethereum will continue to follow BTC in coming sessions. In a statement to CoinTelegraph, the analyst notes that “as soon as the “big brother” finds its support level. Ethereum will most likely follow suit.”
Ethereum Bullish for $2,500 Levels after Comments by Musk
Interestingly, the latest bounce back of Ethereum happened from the support levels that have previously capped ETH’s downside move. Independent market analyst dubbed Rekt Capital spotted an “orange area” on the weekly, ETH/USD chart.
“Ethereum has rallied +16% since rebounding from the orange area. As long as ETH holds the bottom of the structure as support until the end of the week, ETH will confirm a return to the structure after briefly losing it earlier this week,” the analyst added.
$ETH has rallied +16% since rebounding from the orange area
As long as ETH holds the bottom of the structure as support until the end of the week, #ETH will confirm a return to the structure after briefly losing it earlier this week#Crypto #Ethereum https://t.co/geXiqsZqJC pic.twitter.com/3qvXpcp3nk
— Rekt Capital (@rektcapital) July 22, 2021
As we can see from the above chart, Ethereum has formed Falling Wedge on its chart. This suggests a bullish reversal as the ETH price managed to break above the Wedge’s upper trendline with a strong spike in volumes. Post the breakout, the bulls place their upside target as the maximum of the wedge height.
“As long as ETH holds the bottom of the structure as support until the end of the week, [it] will confirm a return to the structure after briefly losing it earlier this week,” added Rekt Capital.
For Ethereum, the difference between the Wedge’s upper and lower trendline is $850. Thus, the breakout above the upper trendline sets the next target to $2,500. However, the price can still fall under $2000 based on the short-term technical charts. The daily ETH chart shows that the price can fluctuate between $1850-$2000.