Could ethereum bullish news related to the launch of an eth futures ETF be the catalyst that triggers a massive breakout of a nearly 16-month-long ascending triangle pattern?
If the pattern holds, the target is approximately $4,000 per eth and a review of the previous all-time highs from the last bull market.
VanEck Announces eth Futures ETF
Global asset manager VanEck, best known for its ETFs and mutual funds, today ethereum-Futures-ETF-EFUT” target=”_blank” rel=”nofollow”>revealed the upcoming launch of the VanEck ethereum Strategy ETF (ETUF).
ETUF will be “an actively managed ETF designed to pursue capital appreciation by investing in Ether (eth) futures contracts.”
Instead of investing in spot eth, the Fund will trade Chicago Mercantile Exchange (CME) eth futures and will be managed by the firm’s Head of Active Trading, Greg Krenzer.
ETUF will be listed on CBOE alongside VanEck’s bitcoin Strategy ETF (XBTF). And although its start on November 15, 2021 marked the end of the cryptocurrency bull market, the introduction of ethereum futures has the potential to fuel the next bull run.
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Ether's target is $4,000 based on the measure rule | ETHUSD on TradingView.com
ethereum News Catalyst Could Trigger Ascending Triangle Breakout
Show me the graph and I’ll tell you what’s new, it’s a famous quote from the late Bernard Baruch. The message reflects the fact that the biggest technical moves tend to coincide with a news catalyst and vice versa.
Essentially, a bullish chart pattern could appear before positive news, such as the launch of an eth futures ETF, while the news itself is the catalyst for a strong breakout.
This is precisely what appears to be brewing on the ETHUSD charts since June 2022. Unlike bitcoin, which bottomed in late 2022, ethereum found support around mid-year. Since then, Ether has hit higher and higher lows, forming a potential ascending triangle chart pattern.
Now, the ascending triangle pattern is approaching the two-thirds point from its apex. This significantly increases the chances of a breakout as an ethereum futures ETF launches. All that is required is a break above $2,000 for eth on higher than normal volume. Under the measure’s rules, hitting the target could push prices above $4,000.
