Two notable technical signals in Ethereum are in the focus of investors. While the SuperTrend indicator turned positive for the first time in more than a year, the ETH price continues to remain above the long-term support curve. Both developments increase the likelihood of a permanent recovery in the market.
SuperTrend signal: First positive reversal in a long time
The SuperTrend indicator, which is frequently used in cryptocurrency analysis, gave an upward signal for Ethereum after a long break. Analyst Ali Charts shared the chart showing that ETH is currently trading at $2,312, while the new buy signal is formed around $1,675.
According to Ali Charts, “For the first time in more than a year, the SuperTrend indicator has started to rise in Ethereum. This signal has triggered significant price movements in the past as it indicates a long-term direction change.”
SuperTrend is generally known as a tool that reveals the general market direction. After the recent rise, the price of Ethereum had previously advanced to the $ 4,000–5,000 range. When the indicator turned negative again, a long period of decline and fluctuation began.
The fact that the indicator has now turned positive once again does not indicate a definitive sign of a major outflow, but it does indicate the possibility of a strong recovery in the medium and long term. Especially as the price holds above this new support zone, a permanent improvement scenario rather than short-term rises comes to the fore.
$8,000 target: Support trend maintained
Another notable analysis was the weekly chart shared by James. Here it can be seen that Ethereum is holding on to the long-term rising trend line that has been in effect since 2016. This trend line has enabled the market to regain strength in many important cycles in the past.
According to James, “The $8,000 level is still on the table as a long-term target for Ethereum. However, for this scenario to be valid, the price must not lose its current trend support and regain upward momentum.”
Ethereum appears to have returned to its trend line after failing to stay above $3,000. Although a structural deterioration is not felt intensely for now, it is critical whether the price will remain in the current support curve.
The target of $ 8,000 is not interpreted as a level to be reached in the short term, but as an upper limit to be followed in the long term. In order to achieve this goal, the current support zone must first be protected and then a stable recovery must begin.
Otherwise, a clear break of the support levels may cause the long-term positive picture in Ethereum to weaken; which could significantly reduce the momentum of the current cycle.
