The crypto market has been experiencing a prolonged bearish trend, referred to as the “crypto winter” since November 2021, resulting in a substantial decline of approximately 60%. However, in the early stages of 2023, indications of market recovery have emerged, with a majority of digital assets displaying significant trading activity.
ETH/USDT 1H Chart (Source: TradingView)
The cryptocurrency Ethereum appears to be consolidating within a rising wedge formation when looking at the 1 Hour. Converging trendlines identify this technical pattern, which is frequently linked to the possibility of a change in market sentiment.
The RSI on the Ethereum market is currently displaying a value of 53.62 exhibiting a bearish trajectory and residing below the signal line, indicating a potential downside reversal in the short term. This movement in the RSI suggests a decline in bullish momentum and increasing opportunities for short-selling positions.
Ethereum is currently trading within a tight range between $1,589.79 and $1,552, in proximity to the 50-day moving average line, suggesting a period of consolidation in the market. Furthermore, within the past 24 hours, the volume of Ethereum has increased by 14.83% to a value of $8,159,615,384 according to CoinMarketCap.
Moreover, the MACD line has recently moved below the signal line, indicating a shift in momentum from bullish to bearish, as the MACD line had been previously located above the signal line. However, the MACD line is still situated within the positive territory, suggesting that the bearish momentum may not be sustained in the long term. The signal line is currently at 4.93, while the MACD line is at 3.72.
A closer look at the Ethereum price chart reveals that bullish momentum is fading, despite the market’s current upward path.