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Technical analysis suggests the days of the Ethereum price consolidation might be over very soon. At the time of writing, Ethereum is trading with a 0.07% gain in the past 30 days, which reveals the current consolidation situation it finds itself under.
However, according to a technical analysis on TradingView, the Ethereum price could be well on its way to reaching a new all-time high after 12 weeks of consolidation.
Ethereum Price Completes Bottom Formation
According to a technical analysis of the Ethereum price in the weekly candlestick timeframe, the cryptocurrency is currently in its 12th week of consolidation after a decline that ended in the first week of August. Interestingly, analysis reveals that the consolidation is at the bottom of the lower trendline in a Channel Up trend in the weekly timeframe that started as far back as June 2022.
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Particularly, a close look at this Channel Up trend reveals that the Ethereum price action has been confined between its upper and lower trendlines in the past two and a half years. Fortunately, the trend is a bullish one with the creation of higher highs and higher lows, which suggests a bullish outlook for the Ethereum price.
As it stands, the Ethereum price has been on an uptrend since the beginning of the week, essentially reversing last week’s declines. Consequently, the price has flipped from bearish to neutral on the weekly outlook and is now moving towards bullish.
The only thing left is for the Ethereum price to keep pushing on this uptrend and flip above the weekly MA50 (50-Day Moving Average). A successful push above this level, according to crypto analyst InvestingScope, would not only signal an end to Ethereum’s prolonged consolidation but also set the stage for a rally toward the channel’s upper trendline.
ETH On The Journey To Recording New Highs
As it stands, the 1W Relative Strength Index has already crossed over its MA, lending charge to the momentum. All that’s left now is an Ethereum price break above the weekly MA50. A break above the MA50 on the weekly timeframe would confirm the shift from consolidation to bullish momentum, draw in fresh buying interest and open up 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 the creation of 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 the Ethereum price peaking above $5,500 before undergoing any major correction.
“When that happens, aim for no lower than the All Time High (TP = 4,900),” the analyst said.
At the time of writing, Ethereum is trading at $2,631.
Featured image created with Dall.E, chart from Tradingview.com