Ethereum has been consolidating for a while, but things might be about to change. The price has been stuck in a range for 12 weeks, but analysts believe it’s forming a strong base for a potential breakout.
Ethereum’s Bullish Outlook
The technical analysis shows that Ethereum is currently at the bottom of an upward trend channel. This channel has been in place for over two years, with the price bouncing between its upper and lower boundaries. The fact that Ethereum has been creating higher highs and higher lows within this channel suggests a bullish outlook.
The price has recently started to climb, reversing last week’s decline. This shift in momentum has made the weekly outlook neutral, and it’s now moving towards bullish.
Breaking Out of Consolidation
The key level to watch is the weekly MA50 (50-Day Moving Average). If Ethereum breaks above this level, it would signal the end of the consolidation period and open the door for a rally.
The Relative Strength Index (RSI) has already crossed above its moving average, adding further fuel to the bullish momentum.
Reaching New Heights
A successful breakout above the MA50 could lead to a new all-time high. The upward channel suggests that Ethereum could reach $5,500 before any major correction.
The analyst recommends aiming for a price target of at least $4,900, which is the current all-time high.
Ethereum is currently trading at $2,631. 
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