Ethereum Monthly Chart Breakout Signals Return of Long-Term 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.

Long-Dormant Trend Strength Comes Alive

Crypto Crew University reported that Ethereum’s Average Directional Index (ADX) has finally broken above a downward trendline that had restricted strength since 2017. This shift is a crucial sign that momentum, inactive for several years, is reawakening.

At the same time, the green directional indicator has crossed above the red one, confirming that buying pressure has regained dominance for the first time since early 2021. Such alignment often appears near the beginning of new macro cycles when confidence returns to the market.

Together, these signals outline a technical foundation similar to Ethereum’s early 2020 structure, when accumulation preceded a powerful advance. Traders now view this alignment as an early clue that Ethereum may be preparing for another strong upward leg.

Momentum Breakout Reflected in RSI Behavior

Another supportive signal appears in the Relative Strength Index. The RSI has pushed through a long-standing downward resistance line, ending years of restrained momentum. Each time this occurred in previous cycles, Ethereum entered sustained bullish phases lasting several months.

The RSI move suggests renewed conviction among market participants. The transition from a weakening momentum phase to an expansionary one often coincides with growing investor confidence and capital inflow.

This change indicates that Ethereum has likely completed its corrective phase, with momentum favoring continued strength if current buying patterns persist.

Technical Support and Market Correlation Strengthen Outlook

Ethereum continues to hold above the 21-month Simple Moving Average and a steady rising trendline extending from earlier cycles. These levels remain essential to maintaining structural stability within the broader uptrend.

Market analyst Mikybull Crypto noted that Ethereum’s behavior also aligns with the Russell 2000 Index, which has recently reached a new all-time high after four years. Historically, Ethereum tends to track this index closely, especially during credit expansion periods.

Mikybull added that this correlation signals rising liquidity across markets — a condition that often benefits Ethereum and other altcoins. Should the asset remain above these support zones, analysts believe it could accelerate toward new highs faster than many expect.

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