The price of ethereum (eth) <a target="_blank" href="https://www.newsbtc.com/news/ethereum-momentum-builds-10-surge-sparks-ath-hopes/” rel=”nofollow noopener” target=”_blank”>recovered about 10% orn wednesday to <a target="_blank" href="https://www.newsbtc.com/analysis/eth/ethereum-price-powers-3685/” rel=”nofollow noopener” target=”_blank”>clear the $3,550 resistance zone very quickly. Interestingly, this bullish price action has led to a bullish signal in a popular indicator used to predict price prospects. In particular, the SuperTrend buy signal has re-emerged, calling into question the potential of ethereum to replicate its past performance after such a signal and move towards the $7,500 price level.
crypto Analyst Highlights Importance of SuperTrend Buy Signal
Renowned crypto analyst Tony “The Bull” Severino, CMT, took to social media platform x to highlight the resurgence of the SuperTrend buy signal on the ethereum price chart. Notably, this SuperTrend buy signal was observed on the weekly candles timeframe, which means that the projected bullish rise will develop over a longer timeframe.
Tony Severino highlighted the historical impact of the SuperTrend buy signal, <a target="_blank" href="https://x.com/tonythebullbtc/status/1861882844886303000?s=46″ rel=”nofollow” target=”_blank”>indicating“Ether had a 120% rally after the 2023 buy signal. Another 120% from today's signal would be $7,500 per $eth.”
The SuperTrend indicator, which is designed to identify clear buy or sell signals based on market trends, previously highlighted a buy signal for eth in early 2023. During that time, the price of ethereum was trading around $1,300. Although ethereum price fell a bit after the buy signal when observed from a smaller time frame, it finally gained strength in the last quarter of 2023.
From that point on, the price of ethereum rose around 170% from a low of $1,536 in October 2023 until it surpassed $4,000 in March 2024, essentially validating SuperTrend's weekly buy signal. In view of this, its reliability as a directional guide has earned it a respected place among technical analysts and traders.
Today, the SuperTrend buy signal has reappeared after printing a sell signal earlier in the year. If ethereum's price reflects its performance in 2023, a 120% rally from its current price range would take it to approximately $7,500. In terms of time frame, we can only look towards past price action. Therefore, the price of ethereum could reach its <a target="_blank" href="https://www.newsbtc.com/news/btc-8-year-cycle-ethereum-price/” rel=”nofollow noopener” target=”_blank”>sometimes peaks in mid-2026.
Technical Analysis Supports Bullish Outlook for ethereum at $7,500
Taking advantage of the SuperTrend signal, <a target="_blank" href="https://www.newsbtc.com/analysis/eth/ethereum-price-powers-3685/” rel=”nofollow noopener” target=”_blank”>other technical indicators further reinforces ethereum's bullish outlook. Recent analysis shows that eth has established a strong upward movement, holding levels above key support at $3,250 and approaching resistance zones near $3,685.
The hourly Relative Strength Index (RSI) is hovering around 50, suggesting that eth has not yet entered overbought territory. Furthermore, the moving average convergence divergence (MACD) for eth/USD is gaining momentum in the bullish zone, indicating a potential for continued upward momentum.
At the time of writing this article, <a target="_blank" href="https://www.newsbtc.com/news/ethereum/deribit-moves-783m-in-ethereum-to-cold-storage-a-bullish-signal-for-eth/” rel=”nofollow noopener” target=”_blank”>the price of ethereum is trading at $3,590, having reached an intraday high of $3,682 in the last 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
