ETH Spikes After Breaking Out From the Falling Wedge, Is There More?

Onchain Market Analyst Lookonchain tweeted that a whale had made $1.3M in 2 weeks. The platform stated that the whale spent 8.63M USDT to buy 5,437 $ETH at $1,587 before the price increased on Oct 20. After that, it sold 5,436 $ETH for 9.93M $USDC at $1,827 2 hours ago.

When looking at the 7-day chart for Ethereum, it could be noted that it had jagged price movements. The coin was trading at $1,784 when the market opened for trading for the week. Late on the first day of the week, ETH reached its maximum price of $1,863 before making lower highs and falling below the opening market price on the third day.

However, ETH recovered on the fourth day and started to rise above its opening market price for the week. From the fourth day onwards, ETH was moving in the range between $1,780 and $1,820.

ETH/USDT 1-Day Chart (Source: Tradingview)

When looking at the chart above, it can be seen that ETH has been trading inside a falling wedge since March 2023. It was making lower highs and lower lows. After receiving support from the $1,540 support level, ETH started to spike. Moreover, as per the best practice of trading a falling wedge, it could be anticipated that ETH could rise by the height of the wedge at the initial stages of its formation.

Hence, if this breakout is a conventional one, then, there is a high chance that ETH could spike and reach $2,011. Moreover, there seems to be more trading activity happening at the price that ETH is currently at, this solidifies the chance of ETH’s rise. On the flip side, if Ethereum starts to crash it may seek support from the $1,542 support level.