Here's Why Ethereum Could Be Ready For A Big Breakout

While Ethereum ETH/USD was trading lower most of Wednesday — cooling off after having a strong green day yesterday — the crypto took a turn in the late afternoon and is trading slightly up again. The crypto has been rebounding the past few weeks after seeing a strong bear market for a couple of months. The crypto has been nearing resistance and could see a breakout in the coming weeks if the bullish trend continues.

Ethereum was up 0.14% at $3,139.60 Wednesday at publication.

See Also: Ethereum Outshines Bitcoin, Dogecoin Rises As Geopolitical Tensions In Eastern Europe Show Signs Of Simmering Down

Ethereum Daily Chart Analysis

• Ethereum has been climbing for the past few weeks and now sits right between the higher low trendline and the $4,000 resistance level. The crypto forming higher lows once again is a bullish sign for it.
• The crypto trades above the 50-day moving average (green) but trades below the 200-day moving average (blue), indicating the crypto is now trading in a period of consolidation. The 50-day moving average may hold as an area of support, while the 200-day moving average may act as resistance.
• The Relative Strength Index (RSI) has been climbing for the past couple of weeks and now sits at 55. This shows the crypto has seen more buyers than sellers over the past few weeks as the price has been increasing. If the RSI can hold above the middle line it may continue to see bullish price movements.

What’s Next For Ethereum?

Ethereum is sitting between support and resistance and has seen bullish movement over the past couple of weeks showing a reversal is in progress. If the crypto can continue to form higher lows, it may see a break of resistance in the next few months and could be ready for a strong bullish move. For this to happen, bullish traders want the price to hold strong in the pattern and break resistance. After a resistance break, bulls want the stock to consolidate above the level before pushing higher once again. Bears want a break below the higher low trendline for a possible strong bearish trend to start forming.