As the crypto market rebounds, a crucial indicator has signaled a significant bullish trend on the Ethereum daily chart, indicating that the conclusion of its six-month downtrend may be approaching. However, certain analysts have cautioned investors about the potential for a bull trap, which could lead to a reversal and new lows. Ethereum started the week strong, surpassing the $2,200 mark for the first time in weeks and hitting a one-month peak of $2,320 on Monday morning.
The cryptocurrency has remained within the trading range of $1,825 to $2,150 since the early February crash, struggling to break free from this boundary despite several attempts. In the last week, the King of Altcoins has surged 20% from the lows observed last Sunday, marking seven straight days of green candles on the daily chart. In light of this performance, ETH has wrapped up the week above the $2,000-$2,150 range, paving the way for a possible retest of the one-month resistance now acting as support. Market observer MacroCRG has stated that ETH is currently the strongest among the big three: Bitcoin, Ethereum, and Solana.
Remarkably, it has surged by over 9.7% and 14.5% in the weekly and daily timeframes, achieving the most robust performance among the top 10 cryptocurrencies by market capitalization. Additionally, it has surpassed the 50-day Moving Average for the first time in 56 days and has re-entered the 12H Ichimoku Cloud for the first time in 55 days. Analyst Ali Martinez reported that a crucial indicator for assessing the current market trend has emitted its first bullish signal in six months, which “just signaled the end of the downtrend.”
