Ethereum has transitioned from a descending channel to a symmetrical triangle pattern since April, signaling a potential breakout.
Veteran analyst Peter Brandt suggests Ethereum may be poised for a major price move after consolidation.
The recent surge in Ethereum's price from $2,400 to over $2,700 is seen as part of its recovery from earlier market weakness.
Brandt's analysis indicates evolving chart patterns that could lead ETH to outperform following a period of lagging behind Bitcoin's gains.
Ethereum previously peaked above $4,000 before retracing to test support and resistance levels within a descending channel since December 2024.
The current symmetrical triangle formation of Ethereum suggests market consolidation before a potential major price movement.
Technical indicators provide mixed signals, with an upward trending moving average supporting short-term bullish momentum.
However, the Average Directional Index reading of 22.72 indicates weak trend strength and market indecision, favoring consolidation over a strong directional move.
Brandt's positive stance on Ethereum implies a reversal of its underperformance compared to Bitcoin, hinting at potential catching up in price.
Traders are monitoring a potential bearish breakdown below $2,150 that could lead to a decline toward long-term support near $1,390.