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Technical analysis suggests ethereum price consolidation days. could end very soon. At the time of writing this article, ethereum is trading with a gain of 0.07% in the last 30 days, revealing the current consolidation situation is located below.
However, according to a technical analysis by TradingView, ethereum price could be on track to hit a new all-time high after 12 weeks of consolidation.
ethereum Price Completes Bottom Formation
According to a technical analysis of ethereum price on the weekly candle time frame, the cryptocurrency is currently in its twelfth week of consolidation after a decline that ended in the first week of August. Interestingly, the analysis reveals that the consolidation lies at the bottom of the lower trend line in an ascending channel trend in the weekly period starting June 2022.
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Notably, a close look at this Channel Up trend reveals that ethereum's price action has been limited between its upper and lower trend lines over the past two and a half years. Fortunately, the trend is bullish with higher highs and lows being created, suggesting a bullish outlook for ethereum price.
As it stands, the price of ethereum has been in an uptrend since the beginning of the week, essentially reversing last week's falls. Consequently, the price turned from bearish to neutral on the weekly outlook and is now moving towards bullish.
The only thing left is for ethereum price to continue driving this uptrend and break above the weekly MA50 (50-day moving average). A successful push above this level, according to crypto analyst InvestingScope, would not only signal the end of ethereum's prolonged consolidation but would also set the stage for a rally towards the channel's upper trendline.
eth on track to record new highs
As it stands, the 1W Relative Strength Index has already crossed its MA, adding momentum to the momentum. All that remains now is a breakout of ethereum price above the weekly MA50. A break above the MA50 on the weekly period would confirm the shift from consolidation to bullish momentum, attract fresh buying interest, and open 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 break above the current all-time high of $4,900. A touch of the upper trend line on Channel Up would see ethereum price peaking above $5,500 before undergoing any major correction.
“When that happens, aim for no less than the all-time high (TP=4900).” the analyst said.
At the time of writing, ethereum is trading at $2,631.
Featured image created with Dall.E, chart from Tradingview.com
