Ethereum printed a textbook bullish reversal candle on the monthly chart - a strong signal that buyers may finally be stepping in with conviction. After a prolonged downtrend and a brutal April close below the 50-month moving average, this kind of recovery is exactly what bulls were hoping for.
The candle itself is notable: a long lower wick and a solid body closing near the highs of the month, which indicates strong demand at lower prices and rejection of further downside. This type of price action at support often marks a key inflection point in market structure.
It’s still early in the month, but this bounce from the ~$1,600 zone, paired with the potential reclaim of the 50-month moving average, could set the stage for a sustained move higher - especially if macro tailwinds return or sentiment improves across the broader market.
Momentum has been weak for months, and ETH has severely underperformed BTC. But reversals don’t start with euphoria - they begin when few are paying attention, and this chart is quietly showing signs of life.
The candle itself is notable: a long lower wick and a solid body closing near the highs of the month, which indicates strong demand at lower prices and rejection of further downside. This type of price action at support often marks a key inflection point in market structure.
It’s still early in the month, but this bounce from the ~$1,600 zone, paired with the potential reclaim of the 50-month moving average, could set the stage for a sustained move higher - especially if macro tailwinds return or sentiment improves across the broader market.
Momentum has been weak for months, and ETH has severely underperformed BTC. But reversals don’t start with euphoria - they begin when few are paying attention, and this chart is quietly showing signs of life.
scott.melker@texaswestcapital.com
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
scott.melker@texaswestcapital.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.