Chances of ETH price reaching $4,000 in April are also boosted by a classic technical pattern.
Dubbed "symmetrical triangle," the pattern usually forms when the price consolidates sideways inside a range defined by a lowering upper trendline and a rising lower trendline, following a sharp move upside or downside.
In an ideal scenario, the triangle resolves after the price breaks in the direction of its previous trend, and is thus considered a "continuation pattern."
However, symmetrical triangle breakouts do not necessarily result in a continuation trend. For instance, in the book Technical Analysis of Stock Trends, technical analysts Robert Edwards and John Magee note that about 25% of all symmetrical triangle breakouts lead to reversals, i.e., the price does not break in the direction of its previous trend, thus defying anticipations.
Ethereum's current breakout appears to be a reversal as it bounces to the upside instead of continuing its previous trend to the downside, as shown in the chart below.
