Bitcoin and Ethereum have both formed ascending channels this year. Some cryptocurrency traders have worried these will morph into bearish flags, with sellers potentially pushing the market back toward the nadirs of 2021. However, recent price action suggests something different is happening.

Today’s chart shows that Ethereum is trying to hold the midline of its parallel channel . This could potentially invalidate the bearish-flag thesis, and become a step toward a broader rebound.

Next, the higher low is occurring near the February 15 high. It’s also slightly above the psychologically important $3000 level (which Ethereum decisively broke March 23-24).

Finally, consider the 100-day simple moving average ( SMA ). This has often provided guidance on the longer-term trend, like in September 2021 ( bullish ) and late-December ( bearish ). This week’s bounce above that line may signal that the direction is working higher again.

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