ETH/USD technical evaluation and why the market should rally

• $1000 acted as stable assist for Ethereum
• A triangle as a reversal sample reveals a bullish medium-term perspective
• The rally on the small timeframes would possibly proceed

The cryptocurrency market rebounded in 2023 after a bearish market in 2022. Bitcoin led the decline, and different cryptocurrencies, corresponding 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 yr. For instance, the FTX scandal left many buyers with out funds. 

However towards all odds, the crypto market rebounded in 2023. Bitcoin is up near 50%, and Ethereum adopted. 

So here’s a technical evaluation primarily based 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 robust assist supplied by the $1000 stage. Typically, the spherical numbers supply assist or resistance, and it seems to be the case right here. 

The bigger the timeframe, the stronger the assist or resistance is. This being the month-to-month chart, we shouldn’t be stunned that Ethereum bounced from assist.

ETHUSD chart by TradingView

The medium-term perspective

Coming right down to the every day chart, the bullish bias stays. Ethereum consolidated above the assist stage talked about earlier and fashioned a contracting triangle. 

This triangle acted as a reversal sample, as the value broke above the higher trendline. Due to this fact, the top of the triangle ought to act as an invalidation stage for any lengthy commerce. 

ETHUSD chart by TradingView

The short-term view

From a short-term perspective, the market seems to kind a pennant. This can be a short-term consolidation sample often adopted by one other rally. 

ETHUSD chart by TradingView

Nonetheless, till the value breaks larger, it’s tough to anticipate the market’s course on such a small timeframe. 

Nonetheless, 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 value attain it. 

All in all, the constructive momentum within the cryptocurrency market continues. Because of this, Ethereum’s technical evaluation has a bullish bias.