Ethereum momentum breakout is visible on the monthly chart as ADX and RSI clear long-term resistance while price holds above the 21-month SMA, indicating renewed bullish strength and a higher probability of a sustained upward leg for ETH in the coming months.
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ADX breakout confirms long-term strength
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RSI cleared a multi-year downtrend mirroring pre-2020 bullish patterns
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Holding above the 21-month SMA and trendline supports continued upside potential
Ethereum momentum breakout: Monthly ADX and RSI clearances signal renewed bullish strength — read analysis and trade implications on COINOTAG.
Ethereum’s monthly chart shows a rare double breakout as ADX, RSI, and trendline supports align, hinting at renewed bullish momentum.
- Ethereum’s ADX broke a seven-year trendline while the green DI crossed above red, confirming a shift in long-term bullish strength.
- The RSI breakout from a multi-year downtrend mirrors pre-2020 rally patterns, signaling renewed market confidence and building momentum.
- Holding above the 21-month SMA and long-term trendline suggests Ethereum’s structure supports continued growth aligned with broader market optimism.
Ethereum is showing a combination of bullish technical signals not seen in years. On the monthly chart, momentum indicators, trend structure, and long-term moving averages all point to a market transition that could redefine its broader trend direction.
What is the Ethereum momentum breakout and why does it matter?
The Ethereum momentum breakout refers to the simultaneous monthly ADX breakout, green DI crossing above red, and RSI clearing a long-term resistance while price remains above the 21-month SMA. These conditions increase the probability of a sustained bullish phase and attract renewed capital flows into ETH.
How did ADX and directional indicators confirm the shift?
On the monthly timeframe, the Average Directional Index (ADX) finally pierced a downward trendline that had limited trend strength since 2017. The green directional indicator crossing above the red confirms buying pressure superiority, a setup historically linked to multi-month advances.
Plain text source mentions: Crypto Crew University highlighted the ADX trendline breach as a key signal. This alignment of ADX and DI on a monthly chart is rare and typically precedes extended trend expansion.
How does the RSI breakout compare to past cycles?
The Relative Strength Index (RSI) cleared a multi-year descending resistance, a behavior that mirrored pre-2020 accumulation phases. In prior cycles, similar RSI breakouts aligned with the start of extended bullish runs lasting several months to over a year.
RSI momentum suggests investor conviction is improving, often translating into larger inflows when macro liquidity conditions are supportive.
What role do support levels and moving averages play?
Ethereum holding above the 21-month Simple Moving Average (SMA) and a long-term rising trendline preserves the structural integrity of the upswing. These levels act as key technical support; a sustained hold increases the likelihood of further gains.
Market analyst Mikybull Crypto noted that Ethereum’s behavior is tracking the Russell 2000 Index, which recently reached a multi-year high. Historically, such cross-market correlation hints at broader liquidity expansion benefiting altcoins.
How should traders interpret this setup?
Traders should view the setup as a conditional bullish edge: confirmation comes from continued ADX strength, RSI momentum, and price staying above the 21-month SMA. Risk management remains essential—use clear stop levels below major support zones to guard against trend failures.
Frequently Asked Questions
What signals indicate Ethereum has exited its corrective phase?
Monthly ADX breaking its long-term downtrend, green DI crossing above red, RSI clearing a multi-year resistance, and price holding above the 21-month SMA together suggest Ethereum has likely completed a corrective phase and may be entering a new bullish cycle.
How long could the bullish phase last if confirmed?
Past instances of similar monthly breakouts have led to bullish phases lasting several months to over a year, but duration depends on macro liquidity, market participation, and on-chain metrics supporting sustained inflows.
Key Takeaways
- ADX confirmation: ADX and DI alignment signal renewed long-term strength.
- RSI breakout: RSI clearing multi-year resistance mirrors prior pre-rally patterns.
- Structural support: Holding above the 21-month SMA and trendline is critical for continuation; manage risk below these levels.
Conclusion
Ethereum’s monthly chart presents a compelling technical case for renewed upside: an Ethereum momentum breakout driven by ADX, RSI, and key moving averages. While historical precedents favor continued gains, traders should combine this technical evidence with disciplined risk management and monitor macro liquidity signals for confirmation.
