Emily Walker
On Wednesday, the price of Ethereum (ETH) experienced a notable increase of about 10%, quickly surpassing the $3,550 resistance level. This surge has triggered a positive signal on a popular predictive indicator, suggesting Ethereum might be on track to reach the $7,500 mark, reminiscent of its previous performance following similar signals.
Importance of the SuperTrend Buy Signal According to Analysts
Well-known crypto analyst Tony “The Bull” Severino shared insights on the platform X regarding the resurgence of the SuperTrend buy signal for Ethereum. This signal was observed on the weekly candlestick chart, indicating a potential for significant price movements over an extended period.
Severino emphasized the signal’s historical significance, saying, “Ether saw a 120% increase following the buy signal earlier this year. If we see another 120% rise from the current level, it would take us to approximately $7,500 per ETH.”
The SuperTrend indicator, which helps in identifying buy or sell opportunities based on market trends, previously indicated a buy signal for ETH at the beginning of 2023 when prices were around $1,300. Although there was a slight dip after the signal, Ethereum’s price surged nearly 170% from a low of $1,536 in October 2023, successfully breaking over $4,000 by March 2024, validating the earlier buy signal.
The latest SuperTrend buy signal has reemerged following a sell signal from earlier in the year. If Ethereum mirrors its past performance, a rally of 120% from its current level could lead to prices around $7,500, potentially reaching this peak by mid-2026 based on previous trends.
Technical Analysis Confirms Optimistic Predictions for Ethereum
In addition to the SuperTrend signal, other technical indicators support a positive outlook for Ethereum’s potential rise to $7,500. Recent analyses reveal that ETH has shown a strong upward trend, maintaining support above $3,250 and nearing resistance levels around $3,685.
The hourly Relative Strength Index (RSI) is currently around 50, indicating that ETH is not yet in overbought territory. Moreover, the Moving Average Convergence Divergence (MACD) for ETH/USD is showing increasing momentum in the bullish zone, suggesting the possibility of ongoing upward movement.
As of now, Ethereum’s price is at $3,590, having peaked at $3,682 in the last 24 hours.