Ethereum Completes 12 Weeks of Consolidation, Targeting $4,900 All-Time High
Technical analysis indicates the consolidation phase for Ethereum may soon conclude. Currently, Ethereum has a 0.07% gain over the past 30 days, reflecting its ongoing consolidation status.
Ethereum Price Completes Bottom Formation
In the weekly candlestick timeframe, Ethereum is in its 12th week of consolidation following a decline that ended in early August. This consolidation occurs at the lower trendline of a bullish Channel Up trend that began in June 2022.
The price action has remained within its upper and lower trendlines for the past two and a half years, indicating a bullish trend with higher highs and higher lows. Recently, Ethereum's price has reversed last week's declines, shifting from bearish to neutral and now trending towards bullish.
For further bullish momentum, Ethereum needs to surpass the weekly MA50 (50-Day Moving Average). A successful breakout above this level would signal an end to the prolonged consolidation and initiate a rally toward the channel’s upper trendline.
ETH On The Journey To Recording New Highs
The 1W Relative Strength Index has crossed above its MA, supporting potential upward momentum. A break above the weekly MA50 would confirm the transition from consolidation to bullish momentum, attracting new buying interest and facilitating the creation of a higher high within the Channel Up structure.
This structure suggests that reaching a new higher high requires breaking above the current all-time high of $4,900. Approaching the upper trendline could push Ethereum’s price above $5,500 before any significant correction occurs.
According to the analyst, “When that happens, aim for no lower than the All Time High (TP = 4,900).”
Currently, Ethereum is trading at $2,631.
