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Technical analysis suggests the days of Ethereum price consolidation can be over very quickly. At the time of writing it is Ethereum is trading with a gain of 0.07% over the past 30 days, showing that current consolidation situation it is located below.
However, according to a technical analysis on TradingView, Ethereum price could be on track to hit a new all-time high after twelve weeks of consolidation.
Ethereum Price Completes Bottom Formation
According to a technical analysis of Ethereum price in the weekly candlestick timeframe, the cryptocurrency is currently in its 12th week of consolidation, following a decline that ended in the first week of August. Interestingly, analysis shows that the consolidation is at the bottom of the lower trendline in a Channel Up trend in the weekly time frame that started back in June 2022.
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In particular, a closer look at this Channel Up trend shows that Ethereum price action has been contained between the upper and lower trendlines over the past two and a half years. Fortunately, the trend is bullish with it creating higher highs and higher lows, indicating a bullish outlook for the Ethereum price.
As it stands now, the Ethereum price has experienced an increasing trend since the beginning of the week, essentially reversed last week’s declines. As a result, the price has moved from bearish to neutral according to the weekly outlook and is now moving towards bullish.
All that remains is for Ethereum price to continue this uptrend and rise above the weekly MA50 (50-day moving average). A successful move above this level would not only mark an end to Ethereum’s long-term consolidation, but also pave the way for a rally towards the channel’s upper trendline, according to crypto analyst InvestingScope.
ETH on a journey to record new highs
As it stands now, the 1W Relative Strength Index has already crossed its MA, boosting momentum. All that remains now is an Ethereum price drop above the weekly MA50. A break above the MA50 on the weekly time frame would confirm the shift from consolidation to bullish momentum, attracting new buying interest and opening Ethereum’s path to creating 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 necessitate a break above the current all-time high of $4,900. A touch of the upper trendline in the Channel Up would see Ethereum price rise peaking above $5,500 before undergoing a major correction.
“If that happens, aim for no lower than the All Time High (TP = 4,900),” said the analyst.
At the time of writing, Ethereum is trading at $2,631.
Featured image created with Dall.E, chart from Tradingview.com
