Ethereum consolidates at multi-year triangle resistance with institutional flow.
Crypto expert Dan Gambardello has recently shared a technical analysis for Cardano price, Bitcoin, and Ethereum during market consolidation.
The analyst examines chart patterns and support levels while maintaining a bullish outlook despite short-term price volatility across major cryptocurrencies. So, here we explore where Cardano (ADA) price might be heading, as per Gambardello’s analysis.
Dan Gambardello plots a massive inverse head and shoulders pattern formation on the chart of Bitcoin. BTC is also now experiencing a throwback to the neckline area.
The analyst monitors Bitcoin’s formation inside this technical framework, noting the completion of the left shoulder and head sections while expecting right shoulder development.
Bitcoin price is in a new midterm range established since November and December, and broke all-time old highs, but is still in consolidation territory. The inverse head and shoulders target suggests a macro range of $300,000 to $130,000, and the present midterm setup has the potential to initiate action towards such levels.
The analyst is speculating right shoulder formation and noted that Bitcoin may have additional downside to move before it can complete the pattern. The current levels of support are the 20 and 50 moving averages, and Bitcoin is slightly above the 50 at $103,000. The next major level of support is the 200 moving average around $95,000.
Gambardello references Bitcoin’s consolidation pattern this cycle and describes it as unlike previous market cycles based on risk model analysis. The higher low Fibonacci range extends from $88,000 to $82,000, though Bitcoin hasn’t reached these levels yet.
Gambardello revisits his April 4th analysis predicting Cardano price movement toward the high 40s support area, with current price action confirming this technical projection made over two months ago. The analyst identified a blue trend line support zone in the 40s during early April when market fear was elevated.
Cardano price currently approaches the previously identified support confluence around 48-49 cents, where the lower trend line intersects with the 786 Fibonacci retracement level. This area was established through Fibonacci analysis, swing low to swing high earlier.
The analyst refers to Cardano’s multi-month consolidation, where the cryptocurrency probed various Fibonacci levels and moving averages in the process. ADA has already probed the support of the green channel, attempted bounces, hit resistances at moving averages, and reversed to lower support levels.
Moving averages weekly provide additional information regarding the technical environment of Cardano price. The 50-week moving average stands at about 65 cents, the 200-week at 68 cents, and the 20-week at about 72 cents. Gambardello monitors weekly candle closes to determine if ADA is able to reclaim these moving averages.
Ethereum continues sideways movement at massive multi-year resistance triangle lower trend line for over a month. This created what Gambardello describes as an incredible technical setup. The cryptocurrency has been testing this resistance level consistently, with price action confirming the validity of long-term technical analysis projections.
The analyst previously forecasted a potential simulated breakdown below the triangle lower trend line, followed by a pullback test of the pattern.
Present price action verifies this technical setup, with Ethereum creating textbook resistance on the multi-year triangle boundary. That is where Ethereum is finding resistance, at where the 50-week moving average intersects with the triangle lower trend line.
Ethereum is trading just above the 200-week moving average, and the next major support level is at $2,200, at the 20-week moving average. On the event of further consolidation, the analyst expects a potential higher low formation at $1,900 to $1,700.
Institutional demand stays below this resistance level and provides underlying support regardless of technical obstacles. The analyst monitors whether Ethereum manages to pierce through the apex of the triangle, which will be bullish for the cryptocurrency.
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