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This consolidation should have lasted a few months, as it did in the past, but the latest rally may have already pushed ETH out of this phase and into a bullish cycle. In past instances, ETH delivered gains ranging between 80% and 150%.
ETH’s most encouraging signal was a break above the 21-day exponential moving average (EMA) that was accompanied by strong trading volumes.
Although false positives have occurred in the past where ETH has attempted to move above the 21-day EMA only to be plunged back down just days after, this is an encouraging first sign that the market is trying to push through bearish sentiment to reverse the downtrend.
If this turns out to be the token’s definitive bullish breakout out of its consolidation stage, it could set things in motion to propel ETH to retest the trend line resistance (former support) shown in the chart, meaning that the token could climb to $3,000 in the next few months.
Momentum indicators are favoring a bullish outlook as the Relative Strength Index (RSI) has made a decisive move above its 14-day SMA while the MACD’s histogram has been steadily rising in the past 11 days as well.
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