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- $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, reminiscent of Ethereum, adopted.
The US greenback’s power is a part of the causes buyers 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 buyers with out funds.
But towards 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 (in addition to the big 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.
The medium-term perspective
Coming all the way down to the day by 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.
The short-term view
From a short-term perspective, the market seems to kind a pennant. This is a short-term consolidation sample normally adopted by one other rally.
However, till the worth breaks larger, it’s tough to anticipate the market’s course 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 constructive momentum in the cryptocurrency market continues. As a end result, Ethereum’s technical analysis has a bullish bias.
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