ETH formed a descending wedge (in blue) during the downward move, indicating upside potential. Initially, the cryptocurrency hit a lower low, suggesting the correction may continue and market sentiment is bearish.
However, the price quickly reversed shortly after hitting a low of $ 3,600. This move pushed ETH above the key level of USD 4,000.
This unexpected reversal took the markets by surprise and optimism returned across the board as most altcoins rebounded. The question now is whether ETH can keep up with its recent advances.
ETH / USDT 12-hour chart | Source: TradingView
Trading Volume: The volume was huge during the recent rally. This gives confidence that an upside move is a potential reversal of the ETH downtrend.
RSI: The daily RSI is rising and in the 4 hour timeframe the RSI has made a higher high which is a bullish signal. If ETH sustains recent move and cannot lose the USD 4,000 support, the RSI can continue to rise in the higher time frames.
MACD: The 12 hour MACD has created a bullish cross and on the daily time frame the MACD is trending up. If the bullish momentum persists, ETH has a good chance of reversing the downtrend.
ETH / USDT 12-hour chart | Source: TradingView
The trend for ETH is bullish as long as the price stays above $ 4,000. Failure to hold on to it will make it easier for the bears to pull ETH back down.
The descending wedge, which is a bullish pattern, is an early sign that ETH may rebound. This was confirmed yesterday and ETH surprised the market by quickly breaking the $ 4,000 mark. So far she is still trying to maintain this important level. If this continues, ETH will soon see another surge.
You can see the ETH price here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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