Ethereum started Monday with its price hitting $2,934 per unit, marking a week filled with a strong 14.9% increase. Over the preceding fortnight, the second-leading crypto asset by market cap witnessed a substantial 25.9% upswing. Kicking off this week, ether’s trading volume over the past 24 hours has hovered around $24.74 billion.
Ethereum
Peering into ethereum’s (ETH) 1-hour chart, a bullish trend emerges through a sequence of notable ascents. The most significant surge leading up to the present price showcases a vigorous short-term buying spree. Yet, the latest chart formations, featuring smaller candles with wicks at both ends, hint at market hesitation. After reaching $2,934, ETH’s value has dropped a hair down to the $2,894 range.
The 4-hour chart reveals a more emphatic bullish trend, highlighted by a recent sharp increase indicative of strong buyer enthusiasm. This upturn was accompanied by a marked rise in volume, bolstering the recent bullish narrative. Transitioning to ETH’s 6-hour chart, it filters out the market’s static, presenting a straightforward uptrend evidenced by consistent gains, a testament to enduring trader interest.
On a daily scale, ethereum has demonstrated a pattern of ascending lows and highs, signaling a sustained bullish outlook. However, trading volumes on bullish days have yet to significantly eclipse those on bearish days, suggesting a degree of caution at elevated price levels. The relative strength index (RSI), standing at 77.4, signals overbought conditions, possibly forecasting a near-term correction. Meanwhile, the Stochastic oscillator at 93.7 remains neutral, with the commodity channel index at 125.6 entering the bearish domain and the average directional index at 34.0 indicating a market in equilibrium.
Focusing on the daily chart’s key simple and exponential moving averages (SMA & EMA), ETH’s price trend maintains its upward momentum. The 10-day EMA at $2,734 and the 20-day EMA at $2,612 continue to signal bullishness. The 50-day SMA at $2,441 and the 100-day SMA at $2,307 further also confirm ether’s positive trajectory. To summarize, despite short-term indicators suggesting overbought conditions, ethereum’s recent performance coupled with critical moving averages supports a continued bullish trend across different timeframes. However, a consistent closing below $2,700 could pave the way for a more significant pullback.
Bull Verdict:
While oscillators flashing overbought readings may point to consolidation or a minor pullback ahead, ethereum’s overall technical picture remains decidedly bullish. The strong and consistent uptrend seen on the hourly, 4-hour, and 6-hour timeframes underscores robust buying pressure and upside momentum in control of the market. At most, overextended technical readings suggest a brief period of consolidation is likely before bulls regain control for a continued push higher.
Bear Verdict:
Despite ether’s series of higher highs recently, the sustainability of the uptrend remains questionable. ETH’s oscillators in overbought territory imply the buying frenzy has overextended itself near-term. Meanwhile, the streak of cautious behavior on upticks on the daily chart threatens bullish conviction. If the $2,700 level is broken decisively with heavy volume as support, ethereum could be vulnerable to a deep pullback as technical momentum sputters and the rally stalls out.
Source: Bitcoin
