Ethereum Fake Breakout On Horizon : (ETH) Price May Reclaim $3K Level Before Moving Lower

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Currently, Ethereum is in a recovery phase after having some difficult weeks. Since this weekend the second largest currency is trading with lower higher highs and higher lows.

At the time of writing, Ethereum is trading at $2,858 with a surge by 1.84% over the last 24hrs.

Ethereum To See A Mini Breakout

From March 2022, Ethereum’s native token Ether (ETH) is been trading in a falling wedge pattern. This falling wedge pattern is pointing towards a breakout to be seen in May.

Often falling wedges are seen during the price trends that are lower within a range that is defined by two descending and contracting trendlines.

When looked from technical analysis, these falling wedges settle once the price see a breakout out of their upper trend and move towards a level that is equal to the maximum distance which lies between the pattern’s upper and lower price formation when looked from the breakout point.

Meanwhile it is important to know that maximum height of a falling wedge is around $395. If the Ethereum bulls rallies above $2,850, which is a potential breakout point, and also if this move is followed by an increased in trading volume, then it is more likely to witness a price action towards $3,150.

ETH Outflow At Coinbase Hits ATH

According to CryptoQuant data, on May 3, the number of Ethereum moving out of Coinbase, which is the second largest crypto exchange by volume, hit the highest level.

Paralelly, according to Glassnode’s on-chain metrics, the balance of Ethereumon all the crypto exchanges dropped on to its lowest level on May 3rd last seen in August 2018

Both these indicators points towards an increased trader interest to hold Eth tokens in comparison with other assets.