ETH/USD Daily Chart (Bitstamp) – Source: TradingView

Back then, two specific signals marked the beginning of Ethereum’s push to $4,000. The first and earliest of the two was a bullish crossover between the 9-day and 21-day EMAs – also known as a ‘golden cross’ – that was accompanied by strong volumes.

The second – and latest signal of the two – was a move to overbought territory in the Relative Strength Index (RSI).

Although most traders typically interpret this as a sign that momentum may be reaching a phase of exhaustion, it is also an indication that the trend’s momentum is quite strong when the price comes from breaking out of a consolidation pattern.

A bullish breakout above the $2,900 level that breaks through this consolidation rectangle could push ETH to $3,000 first and then to $4,000 as it did the last time if positive momentum gains enough traction.

However, in these challenging market conditions with so many potential bearish catalysts, including the on-chain data we reviewed, a bearish outcome is still on the table. This will be confirmed if a drop below $2,300 occurs.