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Technical Analysis Suggests Era of Ethereum Price Consolidation it could be over very soon. At the time of writing, Ethereum is trading with a gain of 0.07% over the past 30 days, which reveals the current situation of consolidation he finds himself underneath.
However, according to technical analysis on TradingView, Ethereum price could be on track to hit a new all-time high after 12 weeks of consolidation.
Ethereum price completes lower formation
According to a technical analysis of Ethereum price on the weekly candlestick time frame, the cryptocurrency is currently in its 12th week of consolidation after a decline that ended in the first week of August. Interestingly, the analysis reveals that the consolidation is at the bottom of the lower trendline in a Channel Up trend during the weekly time frame that started as early as June 2022.
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In particular, a close look at this Channel Up trend reveals that Ethereum’s price action has been limited between its upper and lower trendlines over the past two and a half years. Fortunately, the trend is bullish with higher highs and higher lows being created, suggesting a bullish outlook for Ethereum price.
As it stands, the price of Ethereum has been on an upward trend since the beginning of the week, essentially reversing last week’s declines. Therefore, the price has moved from bearish to neutral according to the weekly outlook and is now moving towards an uptrend.
All that remains is for the Ethereum price to continue this upward trend and surpass the weekly MA50 (50-day moving average). According to crypto analyst InvestingScope, a successful push above this level would not only signal the end of Ethereum’s prolonged consolidation, but also pave the way for a rally towards the channel’s upper trendline.
ETH on its way to recording new highs
As it stands, the 1W Relative Strength Index has already surpassed its MA, providing a boost to momentum. All that remains is for Ethereum price to break above the weekly MA50. A break above the MA50 on the weekly timeframe would confirm the shift from consolidation to bullish momentum, attract new buying interest, and pave the way for Ethereum to create a higher high within the Channel Up structure.
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The Channel Up structure is structured in such a way that creating a new higher high at this point would require a breakout above the current all-time high of $4,900. A Touch of the Upper Trendline in Channel Up Would See Ethereum Price peaking above $5,500 before undergoing a major correction.
“When this happens, aim for no less than the all-time high (TP=4,900),” the analyst said.
At the time of writing, Ethereum is trading at $2,631.
Featured image created with Dall.E, chart from Tradingview.com
