A cryptoanalyst has identified the Golden Triangle, a rare structure that has been forming on the Ethereum (ETH) chart for nearly nine years. According to the analyst, the price of Ethereum remained within this triangle during periods of ups and downs.
However, he says the cryptocurrency is now nearing the top of the triangle pattern, signaling an impending breakout either to the upside or downside. Depending on the direction of that breakout, the analyst has a forecast ETH’s next move and possible price target.
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Ethereum’s golden triangle could trigger a jump to $10,000
A market analyst identified as ‘Merlijn The Trader’ is on Xu divided new Ethereum price analysis, presenting both bullish and bearish scenarios. In a post shared on April 24, Merlijn said that the price of Ethereum is currently trading within golden triangle pattern which has maintained its structure since 2017, two years after the cryptocurrency was launched in 2015.
According to the analyst, the pattern has withstood several major events that caused sharp price swings during all of these events. He pointed to COVID crisis 2020when most cryptocurrencies suffered a steep decline, including ETH, which also crashed significantly. Despite this, he noted that Ethereum continues to be held within the Golden Triangle.
The same pattern remained intact throughout bear market 2022which followed ETH’s explosive rise to an all-time high above $4,800 in 2021. He added that even after peaking in 2026 and undergoing another major correction, Ethereum remained within the triangle without breaking its structure.
Since the structure has remained solid through all these bullish and bearish events, Merlijn believes that ETH may now be approaching a decisive breakthrough from the nine-year formation. Looking at his accompanying chart, he noticed that ETH was approaching the top, the highest point, of its Golden Triangle, where breakouts often occur.
Once the price reaches this top, two outcomes are possible: Ethereum could break higher or move lower through the bottom of the structure.
In his bullish case, Merlijn believes a breakout to the upside could send ETH above $4,350 and push its price towards the measured goal of about $10,000. Given how long the triangle has held, expect Ethereum to continue to rise, with occasional pullbacks, until it eventually reaches an ambitious peak above $56,000. He set this up longer term price target 2028, suggesting that the rally could extend into the next two years.
ETH bear case if the price falls below the triangle
For his bearish scenario, Merlijn The Trader noted that if Ethereum decides to go in the opposite direction to break below the triangle, the move could trigger a decline towards $1,950. Ethereum is currently trading above $2300, following its the last increase which saw an increase of over 36%.
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If the cryptocurrency falls to $1,950, it would represent a drop of more than 15% from current prices. Even so, despite outlining this downside risk, Merlijn remains convinced that a breakout to the upside could be a likely scenario.
Featured image from Unsplash, chart from TradingView
