Ethereum Retests Historic 2016 Trendline: Technical Indicators Point to Potential Upside

Source: TheCryptoUpdates Original Title: Original Link: https://www.thecryptoupdates.com/ethereum-hits-a-historic-trendline/ Ethereum’s sitting on a trendline that’s held up since 2016, and people are getting excited about what comes next. ETH is trading around $3,000 right now with about $14.6 billion in 24-hour volume. It’s up 7% over the past week even though it dipped slightly in the last day.

Analyst Merlijn shared a chart showing ETH inside a green zone that’s been a major support level for almost a decade now. Back in 2016 and 2020, the price hit this zone, retested it, then exploded upward. We’re seeing similar behavior right now, which has traders watching closely.

The technical indicators are starting to look better too. The RSI is at 40.76, still below the neutral 50 line but climbing up from recent lows. That means selling pressure is easing off. The MACD just flipped positive too after weeks of negative momentum, which suggests some early strength building.

Merlijn also shared a liquidity heatmap showing whales bought heavily between $2,750 and $2,850. ETH dropped into that zone and bounced right back. He noted that price action showed strong support absorption at key levels.

Some analysts think if this pattern plays out like previous cycles, ETH could eventually hit $9,000 to $10,000. But first it needs to break above $3,050 cleanly.

Conclusion

Ethereum’s retest of its historic 2016 trendline combined with improving technicals suggests potential for significant upside, though breaking key resistance levels remains critical before targeting ambitious price projections.