Ethereum (CRYPTO: ETH) was struggling to break up bullishly on Tuesday, despite Bitcoin (CRYPTO: BTC) busting up through the top of a falling channel and regaining support at the eight-day exponential moving average (EMA).
Overall, however, the cryptocurrency market was moving higher, in line with the general markets. The SPDR S&P 500 gapped up when the markets opened and was flying about 1.7% intraday.
The second-largest crypto by market cap has been struggling with the upper descending trendline of a triangle formation. Ethereum began trading in the pattern on Dec. 13, after a long-term retracement from its Nov. 10 all-time high of $4.867.81 which brought it down over 24% before bouncing.
Ethereum may simply be lagging behind Bitcoin because the two apex cryptos don’t always trade in unison. If Ethereum can break up from the triangle, it has room to run about 13% higher, which is the measured move of the triangle pattern.
The Ethereum Chart: Like Bitcoin, Ethereum regained support of the eight-day EMA on Tuesday but was struggling with the 21-day EMA, which currently aligns with the upper trendline of the triangle.
The crypto was likely having difficulty with the level due to lower-than-average bullish volume, which indicates Ethereum is in a period of consolidation. By late afternoon, Ethereum’s trading volume was measuring in at about 117,620 compared to the 10-day average of 179,032.
Ethereum will meet the apex of the triangle on Dec. 28 and if the pattern is recognized, traders can expect the crypto to break from the pattern before that date. If the break from the triangle is made on higher-than-average volume, traders can be more confident the pattern was recognized.
Ethereum has resistance above at $4,168.56 and $4.384.43 and support below at $3,949.45 and $3,610.91.
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