Ethereum Indicator Points to A New Bullish Trend! Is This Correct?

Ethereum, the second-largest cryptocurrency by market cap, has been trading in a relatively subdued range in recent months. However, a promising technical development is emerging beneath the surface. 

According to a widely-followed analyst known as Decode, a macro trend oscillator that integrates multiple economic indicators is starting to show the first signs of a bullish trend reversal for Ethereum. This raises the question: Is Ethereum on the brink of a new bull market cycle?

Let’s dive into the technical and macro signals that are pointing toward a potentially bullish future for ETH.

Ethereum’s Macro Trend Oscillator Hints at Recovery

One of the more compelling signals recently surfaced from Decode's proprietary Ethereum macro trend oscillator. 

This tool aggregates 17 key economic and financial indicators—including central bank liquidity (M2), equity markets, bonds, commodities, and sentiment data—to evaluate long-term price momentum across multiple timeframes.

The oscillator has historically painted the market red during bearish phases and green during bullish uptrends. 

Over the past year, Ethereum’s chart has been dominated by red histogram bars, highlighting persistent macroeconomic weakness. But in recent weeks, these red bars have started to shrink in magnitude, a subtle but notable development.

"Momentum is clearly shifting," Decode noted. "This oscillator is not arbitrary; it reflects real economic shifts. And Ethereum is responding."

Read also: ETH Price Analysis: How This Week Might Turn Ethereum Bullish

Short-Term Signals Turn Positive on Lower Timeframes

On the 3-day chart, Ethereum has shown a rejection from negative territory, printing a small green bar for the first time in months. 

While this was followed by a brief pullback, Decode sees it as a potential early sign of macro trend reversal. The appearance of green bars in lower timeframes often precedes sustained uptrends in longer-term charts.

This minor uptick is being closely watched by analysts, especially given the historical consistency of this oscillator’s performance in predicting market cycles. 

A clear shift from red to green across all timeframes typically signals the start of rapid, sustained upward momentum in crypto markets.

Ethereum's Recent Price Action and Market Sentiment

At the time of writing, Ethereum is trading at $1,830, rebounding from a recent dip below $1,800, where it briefly touched $1,785. 

The market's volatility led to over $35.92 million in ETH liquidations, with long positions taking the brunt of it at $28.38 million.

Despite the price fluctuations, analysts point out that the decline in liquidation size and the faster rebound from recent lows reflect growing market resilience. These characteristics often mark the early stages of accumulation before a full-scale breakout.

A Broader Macro Picture: Why Expansion Phases Matter

Decode's macro trend oscillator isn’t limited to just crypto assets. It also tracks global financial instruments such as the S&P 500, commodities, and currency flows. 

Across all markets, a recurring pattern emerges: bullish (green) phases last longer and trend more steeply upward than bearish ones. 

This suggests a structural bias in markets toward expansion—a factor Ethereum stands to benefit from as macroeconomic conditions stabilize.

The green phase in traditional markets tends to spill over into crypto assets, particularly Ethereum, which often leads altcoins during broader market upswings. 

Decode emphasizes that this cycle could repeat, especially if inflation subsides and liquidity increases in global markets.

Read also: Ethereum Merge: Definition, How It Works, and Real-World Impact

Ethereum Outlook: A New Bullish Cycle?

While Ethereum’s price is still far from its previous highs near $4,800, the data suggests we might be witnessing the early stages of a bullish transition. 

The consistency of green bar formations across timeframes will be a critical signal. If these indicators persist, Ethereum could potentially reclaim the $2,700–$3,000 range in the coming months.

Decode remains cautious but optimistic: "We're seeing the earliest footprints of a major move. Patience is required, but this is where bull runs begin."

FAQ

What is the Ethereum Macro Trend Oscillator?

It’s a technical analysis tool created by Decode that tracks 17 key macroeconomic and financial indicators to gauge Ethereum’s long-term momentum. It uses color-coded bars—red for bearish, green for bullish—to help visualize market cycles.

What is the current Ethereum price trend?

As of now, Ethereum is trading around $1,830. Although short-term fluctuations persist, multiple indicators—including Decode’s oscillator—suggest a gradual shift toward a bullish ETH trend.

Could Ethereum reach new highs if this trend continues?

If the macro trend oscillator maintains a green signal across all timeframes, Ethereum could regain critical resistance levels around $2,700–$3,000 and potentially aim higher if market sentiment aligns.

Is this a good time to invest in Ethereum?

While indicators suggest improving momentum, investors should remain cautious. It's wise to wait for confirmation across multiple timeframes and consider broader macroeconomic factors before making significant moves.