Ethereum SuperTrend Signal That Led To 120% Price Surge In 2023 Has Returned, Why ETH Could Reach $7,500

Ethereum (ETH) price. It increased by about 10%n wednesday l Clear the $3,550 resistance area Very quickly. Interestingly, this bullish price action resulted in a bullish signal on a popular indicator used to predict price forecasts. It is worth noting that the SuperTrend buy signal has reappeared, Which raises doubts about Ethereum’s potential To repeat its previous performance after this signal and move towards the $7,500 price level.

Cryptocurrency analyst highlights the importance of the SuperTrend buy signal

Popular cryptocurrency analyst Tony “The Bull” Severino, CMT, took to social media platform X to highlight the reappearance of the SuperTrend buy signal on the Ethereum price chart. In particular, this SuperTrend buy signal was observed on the weekly candlestick time frame, which means that the expected bullish rally will continue over a larger time frame.

Tony Severino pointed out the historical impact of the SuperTrend buy signal, It is useful“Ethereum had a 120% rally after a buy signal in 2023. Another 120% of today’s signal would be $7,500 per dollar ETH.”

The SuperTrend indicator, which is designed to identify clear buy or sell signals based on market trends, highlighted a buy signal for ETH in early 2023. During that time, Ethereum price was trading around $1,300. Although Ethereum price fell slightly after the buy signal when observing from a smaller time period, it eventually gained strength in the last quarter of 2023.

From that point, the price of Ethereum rose about 170% from the low of $1,536 in October 2023 until it crossed over $4,000 in March 2024, essentially confirming the validity of the SuperTrend weekly buy signal. In light of this, its reliability as a trend guide has earned it a cult status among technical analysts and traders.

Today, the SuperTrend buy signal has resurfaced after printing a sell signal earlier in the year. If Ethereum’s price reflects its performance in 2023, a 120% rise from its current price range would reach around $7,500. In terms of time frame, we can only look at past price performance. Therefore, the price of Ethereum could reach its maximum The peak is sometimes in mid-2026.

Technical analysis supports the bullish outlook for Ethereum to $7,500

Based on SuperTrend signal, Other technical indicators Which reinforces the bullish outlook for Ethereum. Recent analysis shows that ETH has established a strong upward movement, maintaining levels above the key support at $3,250 and approaching resistance areas near $3,685.

The hourly Relative Strength Index (RSI) reads around 50, indicating that ETH has not yet entered the overbought zone. Additionally, the Moving Average Convergence Divergence (MACD) of ETH/USD is gaining momentum in the bullish zone, indicating the potential for continued bullish momentum.

At the time of writing, Ethereum price It is trading at $3,590, after hitting an intraday high of $3,682 in the last 24 hours.

Featured image created with Dall.E, chart from Tradingview.com