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The Ethereum market has been showcasing signs of potential breakout from its prolonged consolidation phase. Currently, Ethereum shows a modest gain of 0.07% over the past month, indicative of its consolidation status. However, recent technical analyses suggest that Ethereum might be gearing up for a significant price surge.
Ethereum Price Completes Bottom Formation
Examining Ethereum’s price movements through the weekly candlestick framework reveals that the cryptocurrency is in its 12th week of consolidation following a decrease that concluded in early August. Intriguingly, analysis indicates that Ethereum’s price is positioned at the bottom of a Channel Up trend’s lower trendline, a trend that began in June 2022.
Exploring the Channel Up Trend
The Channel Up trend has encapsulated Ethereum’s price action between its upper and lower trendlines for over two years. This trend is inherently bullish, characterized by the formation of higher highs and higher lows, suggesting a positive price trajectory for Ethereum. Recently, Ethereum has been on an upward trend, reversing last week’s downturns. As a result, the weekly outlook for Ethereum has shifted from bearish to neutral, inching closer to a bullish stance.
Breaking Through Key Resistance Levels
For Ethereum to fully capitalize on this upward momentum, it needs to break through the weekly MA50 (50-Day Moving Average). According to crypto analyst InvestingScope, surpassing this level could mark the end of Ethereum’s extended consolidation period and pave the way for a rally towards the upper trendline of the channel.
ETH On The Journey To Recording New Highs
Currently, the 1W Relative Strength Index has crossed over its moving average, adding fuel to the momentum. The crucial next step is for Ethereum to breach the weekly MA50. Achieving this would confirm a transition from consolidation to bullish momentum, attract fresh buying interest, and potentially lead Ethereum to a new higher high within the Channel Up structure.
Targeting New All-Time Highs
The Channel Up pattern suggests that establishing a new higher high would require breaking past the existing all-time high of $4,900. Reaching the upper trendline could propel Ethereum’s price above $5,500 before any significant corrections occur. As one analyst mentioned, “When that happens, aim for no lower than the All Time High (TP = 4,900).”
At this point, Ethereum is trading at $2,631, holding steady above the $2,600 mark. This price level is critical for setting the stage for future upward movements, as indicated by the current technical indicators and market sentiment.
