$1000 acted as strong help for Ethereum
A triangle as a reversal sample reveals a bullish medium-term perspective
The rally on the small timeframes would possibly proceed
The cryptocurrency market rebounded in 2023 after a bearish market in 2022. Bitcoin led the decline, and different cryptocurrencies, similar to Ethereum, adopted.
The US greenback’s energy is a part of the causes traders fled the cryptocurrency market. But different components additionally contributed to the so-called “crypto winter” from final yr. For instance, the FTX scandal left many traders with out funds.
But in opposition to all odds, the crypto market rebounded in 2023. Bitcoin is up near 50%, and Ethereum adopted.
So here’s a technical analysis primarily based on the lengthy, medium, and short-term views for the ETH/USD. Where will Ethereum go subsequent?
ETH/USD long-term view
The one factor that strikes the eye on the month-to-month chart (moreover the large drop in 2022) is the robust help provided by the $1000 degree. Often, the spherical numbers supply help or resistance, and it seems to be the case right here.
The bigger the timeframe, the stronger the help or resistance is. This being the month-to-month chart, we shouldn’t be shocked that Ethereum bounced from help.
ETHUSD chart by TradingView
The medium-term perspective
Coming all the way down to the every day chart, the bullish bias remains. Ethereum consolidated above the help degree talked about earlier and fashioned a contracting triangle.
This triangle acted as a reversal sample, as the worth broke above the higher trendline. Therefore, the finish of the triangle ought to act as an invalidation degree for any lengthy commerce.
ETHUSD chart by TradingView
The short-term view
From a short-term perspective, the market seems to type a pennant. This is a short-term consolidation sample often adopted by one other rally.
ETHUSD chart by TradingView
However, till the worth breaks greater, it’s tough to anticipate the market’s route on such a small timeframe.
Nevertheless, Ethereum fashioned an inverse head and shoulder sample round $1,500. The lowest level on the sample ought to act as a warning sign for bulls, ought to the worth attain it.
All in all, the optimistic momentum in the cryptocurrency market continues. As a consequence, Ethereum’s technical analysis has a bullish bias.