Following a bear market in 2022, the cryptocurrency market recovered in 2023. Bitcoin led the decline, and other cryptocurrencies, such as Ethereum, followed.
Bitcoin led the decline, and other cryptocurrencies, such as Ethereum, followed suit.
The US dollar’s strength is one reason traders fled the cryptocurrency market. However, other factors contributed to the so-called “crypto winter” of last year. For example, the FTX scandal left many traders without funds.
Despite all odds, the crypto market recovered in 2023. Bitcoin has increased by nearly 50%, and Ethereum has been adopted.
So, for the ETH/USD, here’s a technical analysis based primarily on long-term, medium-term, and short-term perspectives. Where will Ethereum go next?
The long-term outlook for Ethereum/USD
The one thing that stands out on the monthly chart (aside from the massive drop in 2022) is the solid support the $1000 level provides. Usually, spherical numbers provide assistance or resistance, which appears to be the case here.
The greater the timeframe, the greater the assistance or resistance. We shouldn’t be surprised that Ethereum bounced from support on this month-to-month chart.
The medium-term outlook
When it comes to the daily chart, the bullish bias remains. Ethereum consolidated above the previously mentioned support level, forming a contracting triangle.
As the value broke above the higher trendline, this triangle was a reversal sample. As a result, the tip of the triangle should serve as an invalidation point for any lengthy transaction.
The short-term outlook
In the short term, the market appears to be forming a pennant. It is a short-term consolidation sample that is usually followed by another rally.