- $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 may 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 explanations buyers fled the cryptocurrency market. However different components additionally contributed to the so-called “crypto winter” from final 12 months. For instance, the FTX scandal left many buyers with out funds.
However in opposition to all odds, the crypto market rebounded in 2023. Bitcoin is up near 50%, and Ethereum adopted.
So here’s a technical evaluation based mostly on the lengthy, medium, and short-term views for the ETH/USD. The place will Ethereum go subsequent?
ETH/USD long-term view
The one factor that strikes the attention on the month-to-month chart (moreover the large drop in 2022) is the sturdy help supplied by the $1000 stage. Usually, 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.
The medium-term perspective
Coming all the way down to the every day chart, the bullish bias stays. Ethereum consolidated above the help stage talked about earlier and fashioned a contracting triangle.
This triangle acted as a reversal sample, as the worth broke above the higher trendline. Due to this fact, the tip of the triangle ought to act as an invalidation stage for any lengthy commerce.
The short-term view
From a short-term perspective, the market seems to type a pennant. It is a short-term consolidation sample normally adopted by one other rally.
Nonetheless, till the worth breaks greater, it’s tough to anticipate the market’s path on such a small timeframe.
However, Ethereum fashioned an inverse head and shoulder sample round $1,500. The bottom 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 within the cryptocurrency market continues. Because of this, Ethereum’s technical evaluation has a bullish bias.