• Ethereum rebounded in 2023 after a bearish market in 2022.
• A triangle as a reversal pattern reveals a bullish medium-term perspective.
• The rally on the small timeframes might continue.
Cryptocurrency Market Rebound
The cryptocurrency market rebounded in 2023 after a bearish market in 2022. Bitcoin led the decline, and other cryptocurrencies such as Ethereum followed suit due to the US dollar’s strength and other factors such as the FTX scandal which left many investors without funds.
ETH/USD Long-Term View
On the monthly chart, $1000 acted as solid support for Ethereum. Often, round numbers offer support or resistance, and this appears to be the case here since it is a large timeframe chart – making any support or resistance even stronger. Therefore, Ethereum bounced from this level of support.
Medium-Term Perspective
Looking at the daily chart, there is still a bullish bias present in Ethereum’s price action. The cryptocurrency consolidated above its former support level of $1000 before forming a contracting triangle which acted as a reversal pattern – breaking through its upper trendline. This means that any long trades should take into account this end of triangle level for invalidation purposes.
Short-Term View
In terms of short-term movement, it appears that Ethereum is forming a pennant which is usually followed by another rally. However, until the price breaks higher from this consolidation pattern it will be difficult to predict where exactly the market will go next on such a small timeframe. Nonetheless, an inverse head and shoulder pattern has been formed which could signal further upside potential for ETH/USD pair if it can break above its neckline resistance level at $1300 soon enough.
Conclusion
Overall, Ethereum’s technical analysis indicates that there may still be more room to rally if certain levels are broken on both short and long-term perspectives respectively before any major corrections occur again in the future – continuing with its current rebound momentum seen since early 2023 so far!
