Usman Salis
⬤ Ethereum is hovering around $3,049 as traders focus on a developing technical signal on the daily timeframe. The asset is approaching a key RSI trendline that has historically served as an early warning sign before major price moves. The current ETH/USDT chart shows momentum tightening while price consolidates following a recent pullback.
⬤ The pattern is familiar to those tracking ETH's recent history. Earlier this year, the RSI formed similar descending trendlines that broke before Ethereum made significant price moves. Two previous breakouts are visible on the chart's left side, showing how the momentum indicator shifted before actual price action. The current RSI setup looks remarkably similar, with another downward trendline now being tested. These breaks have typically signaled momentum recovery ahead of any visible price breakout.
⬤ On the price chart itself, ETH remains in a broader corrective phase after pulling back from recent highs. However, the RSI is gradually climbing from lower levels, hinting at early momentum strengthening. While Ethereum hasn't confirmed any price breakout yet, the RSI trendline breaks tend to happen first and provide advance signals. With ETH consolidating near the $3,000 zone, this setup mirrors earlier instances where momentum shifted before price caught up.
⬤ The current signal carries weight as Ethereum approaches a point where momentum and price structure could align. A confirmed RSI trendline break might boost positive sentiment and trigger stronger movement in upcoming sessions. On the flip side, failing to break through could keep Ethereum capped under continued resistance. With volatility compressing and RSI at a decisive level, traders are watching whether this indicator will once again telegraph a meaningful shift in ETH/USDT's broader trend.
Usman Salis
