The price of Ethereum is inching closer to the significant $3,200 milestone, having surged by 10% in the past 48 hours. This raises the question of whether a bull market is imminent. Various indicators suggest the potential for upward movement in the cryptocurrency’s value.
Is Ethereum Breaking Its Resistance?
Ethereum (ETH) is on the verge of surpassing a long-standing resistance level, potentially propelling its price to $3,200. Currently valued at $3,140, ETH has seen nearly a 10% increase over the past week, mirroring the overall rise in the cryptocurrency market, which experienced a 9% growth during the same period.
ETH is attempting to breach its descending channel’s upper boundary, a move supported by bullish signals on the daily chart. This suggests a decrease in selling pressure and an increase in buying interest. The coin’s Chaikin Money Flow (CMF) has also risen above the zero line, indicating an influx of new liquidity.
Can ETH Maintain Momentum?
The cryptocurrency market has observed ETH moving towards the upper line of its descending channel, a resistance level since March. The positive shift in ETH’s CMF suggests that buying pressure is currently outpacing selling pressure, driven by an increase in trading volume. Santiment’s data reveals a 40% rise in ETH’s daily trading volume over the past week.
Furthermore, Ethereum’s Directional Movement Index (DMI) shows bullish signals, with the positive directional index crossing above the negative index on May 17. Additionally, the Elder-Ray Index confirms stronger buyer presence in the market.
What Are the Other Metrics?
ETH’s Positive Directional Index (green) crossing above the Negative Index (red) on May 17 indicates a bullish trend. The Elder-Ray Index also shows positive values, suggesting buyer dominance.
Concrete Inferences
- ETH must break the descending channel’s upper boundary to target $3,200.
- Increased trading volume supports potential upward price movement.
- Positive CMF and DMI readings indicate buying pressure is outpacing selling pressure.
- Failure to break resistance may lead to a price drop to $2,775.
Conclusion
Ethereum bulls have a chance to push the price above $3,200 if they can break through the upper line of the descending channel. However, if selling pressure returns, the price could fall to $2,775, highlighting the volatile nature of the cryptocurrency market.