ETH/USD Set to Rally: Here’s the Technical Analysis to Prove It

• The cryptocurrency market rebounded in 2023 after a bearish market in 2022.
• Ethereum appeared to find strong support at $1000, and the daily chart showed a bullish reversal pattern.
• Ethereum may continue to rally on the short-term perspective as it formed an inverse head and shoulder pattern.

Cryptocurrency Market Rebound

The cryptocurrency market had experienced a bearish decline in 2022, but with Bitcoin leading the rebound in 2023, other cryptocurrencies such as Ethereum followed suit. Strength of the US dollar was one of the reasons investors fled from crypto, but other factors also contributed to what is known as the “crypto winter”.

Long-Term Perspective

On the monthly chart for ETH/USD, there was a strong support found at $1000 level. This is common for round numbers offering either support or resistance depending on its strength on larger timeframe like this one. With that being said, it is not surprising that Ethereum bounced from support when looking at it from a long-term perspective.

Medium-Term View

When looking at the daily chart for ETH/USD, there appears to be a bullish bias still present after consolidating above mentioned support level earlier and forming a contracting triangle which acted as a reversal pattern once price broke above its upper trendline.

Short-Term Outlook

From a short-term perspective, Ethereum seems to be forming what looks like pennant – which usually indicates another rally ahead – and an inverse head and shoulder pattern which could add further confidence in potential upcoming rally.

Conclusion

Ethereum has shown significant recovery since early 2021 with solid technical analysis conclusion drawn from long-term view providing strong support at $1000 down to medium and short term outlooks indicating potential upside movements in near future.