- Ethereum’s ADX has broken a seven-year trendline, with the green DI crossing above red signaling some confidence in long-term bullish momentum.
- The RSI breaking out of a multi-year downtrend is similar to prior rallies leading up to 2020 and confirms renewed participant confidence and underlying bullish momentum.
- Additionally, the positive structure of Ethereum is validated by holding above the 21-month SMA and long-term trendline, in conjunction with the optimism across the broader market.
Ethereum is exhibiting a blend of bullish technical signals not seen in years. Monthly chart momentum indicators, trend structure, and long-term moving averages are all signaling a market transition that could redefine its larger trend direction.
Long-Dormant Trend Strength Comes Alive
Crypto Crew University reported that Ethereum’s Average Directional Index (ADX) has finally broken above a downward trendline that had restricted strength since 2017. This shift is a crucial sign that momentum, inactive for several years, is reawakening.
Alongside this, the green directional indicator has moved over the red directional indicator, indicating that buying pressure has taken over again after being absent for most of the time since early 2021. This kind of movement typically signals that we are around the beginning of new macro cycles, which can signal a return of confidence.
Together, these signals outline a technical foundation similar to Ethereum’s early 2020 structure, when accumulation preceded a powerful advance. Traders now view this alignment as an early clue that Ethereum may be preparing for another strong upward leg.
Momentum Breakout Reflected in RSI Behavior
Another supportive signal appears in the Relative Strength Index. The RSI has pushed through a long-standing downward resistance line, ending years of restrained momentum. Each time this occurred in previous cycles, Ethereum entered sustained bullish phases lasting several months.
The RSI move suggests renewed conviction among market participants. The transition from a weakening momentum phase to an expansionary one often coincides with growing investor confidence and capital inflow.
This change indicates that Ethereum has likely completed its corrective phase, with momentum favoring continued strength if current buying patterns persist.
Technical Support and Market Correlation Strengthen Outlook
Ethereum continues to hold above the 21-month Simple Moving Average and a steady rising trendline extending from earlier cycles. These levels remain essential to maintaining structural stability within the broader uptrend.
Market analyst Mikybull Crypto noted that Ethereum’s behavior also aligns with the Russell 2000 Index, which has recently reached a new all-time high after four years. Historically, Ethereum tends to track this index closely, especially during credit expansion periods.
Mikybull added that this correlation signals rising liquidity across markets — a condition that often benefits Ethereum and other altcoins. Should the asset remain above these support zones, analysts believe it could accelerate toward new highs faster than many expect.
