As a seasoned analyst with over two decades of experience in the financial markets under my belt, I’ve seen my fair share of market cycles and trends. The current state of Ethereum, as suggested by technical analysis, appears to be on the cusp of something significant.
Based on technical analysis, it appears that the period of Ethereum price consolidation may be nearing its end quite soon. Currently, Ethereum is showing a modest 0.07% increase over the past month, indicating the ongoing consolidation phase.
Based on an examination conducted on TradingView, it appears that Ethereum’s price might be heading towards a fresh record high following 12 weeks of stability.
Ethereum Price Completes Bottom Formation
Based on an examination of Ethereum’s price using the weekly candlestick chart, it appears that the cryptocurrency has been in a 12-week period of sideways movement following a decrease that concluded in the first week of August. Notably, this consolidation is occurring near the bottom line of an ascending trend channel that began in June 2022 and indicates an upward trend in the weekly timeframe.
By examining the Channel Up pattern closely, it’s clear that the value of Ethereum has been moving within a range defined by its upper and lower trendlines over approximately two and a half years. Fortunately, this trend appears to be positive, as the formation of higher peaks and higher troughs indicates a bullish forecast for Ethereum’s price, hinting at optimism for its future value.
Over the past few days, the price of Ethereum has been climbing steadily, effectively counteracting its drop from the previous week. This shift in direction has moved the weekly sentiment from bearish to neutral, with a growing tendency toward bullish.
To continue its upward trajectory and surpass the 50-day moving average (MA50) is the final step for Ethereum’s price. If this level is conquered, as suggested by crypto analyst InvestingScope, it would indicate the end of Ethereum’s extended consolidation period and potentially pave the way for a surge toward the upper trendline of its channel.
ETH On The Journey To Recording New Highs
From my analysis, it appears that the 1W Relative Strength Index has surpassed its moving average, indicating a boost in momentum. The next significant step would be for Ethereum’s price to breach the weekly MA50. A successful break above the MA50 on the weekly chart would suggest a transition from consolidation to bullish movement, attract fresh investors, and potentially allow Ethereum to reach a higher high within the Channel Up structure.
In simpler terms, for Ethereum’s price to reach a new record high beyond its current peak of $4,900, it must first break through its existing trendline. If it touches this upper trendline in the Channel Up structure, we can expect the price to surpass $5,500 before experiencing a significant correction.
“When that happens, aim for no lower than the All Time High (TP = 4,900),” the analyst said.
At the time of writing, Ethereum is trading at $2,631.
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2024-11-01 01:34