ETHUSD soared to a new high for the year, and the move was unrelated to the US dollar.
ETHUSD soared to a new high for the year
The move was not related to the US dollar
$2,000 is a pivotal level for the pair
Less than one week before the Federal Reserve (Fed) meeting, the cryptocurrency market reached new highs for the year. ETH/USD, for instance, just made a new high, trading close to $1,800.
It was not because of a soft dollar. Just the contrary, the dollar has been bought across the FX dashboard while the leading cryptocurrencies made a new high for the year. Therefore, investors might find the current levels too depressed and think it is worth investing in.
What does the technical picture show for Ethereum now that it has made a new high for the year?
ETHUSD chart by TradingView
Bullish triangle’s measured move points to more upside
ETH/USD consolidated in a contracting triangle during the second half of last year. The triangle formed at the bottom of a bearish trend, and when 2023 started, the market broke above its upper trendline
Therefore, the pattern acted as a reversal.
Such a triangle has a measure move given by the length of its longest segment. The second segment is the longest, as the triangle is irregular (i.e., the second segment is longer than the first one).
It means that if we project the length of it from the end of the triangular pattern, we can find the measured move around $2,200. Moreover, it means that the market should move above the pivotal $2,000 level.
On the flip side, the bullish scenario would be invalidated should Ethereum reverses and moves below $1,200.
It would be curious if the market would remain uncorrelated with the US dollar. That should concern crypto traders, given that the Fed March meeting is due next week.