Ether rose above $3,000 earlier this week, the highest level since April 2022.
demand, and to the cheer of the bulls, the former resistance-turned-support held ground, reinforcing the bullish trend change.
According to Kraken OTC, other indicators like the Ichimoku cloud also paint a bullish picture.
Ichimoku cloud, created by Japanese journalist Goichi Hosada in the 1960s, comprises five lines: Leading Span A, Leading Span B, Conversion Line or Tenkan-Sen (T), Base Line or Kijun-Sen (K) and a lagging closing price line. The difference between Leading Span A and B forms the cloud. A bullish cloud is green, while a bearish one is red. Crossovers above and below the cloud are taken to represent bullish and bearish trend changes.
As of writing, ether traded well above the Ichimoku cloud on the weekly chart.
“According to the weekly Ichimoku Cloud model, ETH is in a firmly bullish posture, trading above the Tenkan-sen, Kijun-sen and the Ichimoku Cloud itself. The critical level to watch is $2,141 – a close below this would invalidate the ascending triangle pattern,” Kraken OTC added.
The bullish posturing on the charts is consistent with a positive fundamental supply outlook. Per some analysts, ether has seen a notable active reduction in its supply since Ethereum switched to a proof-of-stake consensus mechanism and is ripe for a move higher.
