- The monthly chart of Ethereum has formed a Morning Star candlestick pattern, which historically signals a strong upward move.
- According to analysts, ETH needs to defend important prices, especially its BTC pair price level, to continue growing.
- Because of major macroeconomic factors, Ethereum is in a position where technical signs, as well as other indicators, suggest it could see a significant rise.
Ethereum (ETH) has garnered significant interest in the crypto community after its monthly chart developed a major pattern known as a “Morning Star” candlestick. Usually seen as a strong reversal signal in technical analysis, this pattern has led many people to speculate that the worst for ETH is over and a sharp rally may occur soon.
“Morning Star” Pattern May Trigger an Increase in Ethereum Price
The signal from the Morning Star on Ethereum’s monthly chart, pointed out by Merlijn The Trader, is seen as a “major turning point.” He provided a chart that features a long red candle, followed by a tight-bodied candle (typical of mixed signals), and finally a green (bullish) candle that ends near the center of the first red candle.
Source: X @MerlijnTrader
This textbook pattern has historically been a key indicator of shifts in the traditional or cryptocurrency markets. Merlijn said a look at what history has shown means the present moment could be a sign of an intense and surge ahead.
According to his analysis, Ethereum was trading at $2,484, down slightly on the day but still within a bullish context.
Ethereum is Now Above its Critical Support Level
Michaël van de Poppe added his opinion about Ethereum with a short term technical outlook. He wrote that Ethereum recently broke through a significant resistance level and is now solidly above its essential support zone.
His X post includes a chart showing ETH just above the $0.051 BTC level on the ETH/BTC pair, and he refers to this as a “holding zone.”
Source: X @CryptoMichNL
Van de Poppe believes that holding onto this newly reclaimed support is necessary to maintain upward momentum. He believes that the results from this week’s macroeconomic data could significantly impact whether ETH maintains its current levels.
Bullish Signals are Evident from Both Analysts
Morning Star signals that investors might be turning more positive, but van de Poppe’s study suggests that a period of stable support could be what launches the cryptocurrency higher.
Both analysts believe that Ethereum must maintain a position above key levels to remain stable in the short term. Should the Morning Star occur as it usually does and holding zones remain strong, ETH may be on track for another upward leg in this current market cycle.
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