Ethereum Price Analysis: ETH Rallied 10% on Positive Market Sentiment, But Will This Last?
Key Support levels: $3,000, $2,750
Key Resistance levels: $3,600, $4,000
ETH is found in what resembles a relief rally after confirming the support at $3,000. It broke above $3,300 and is now consolidating as traders take profit. Should the rally continue, the cryptocurrency faces a key resistance at $3,600 which can put this momentum to the test.
Trading Volume: The volume on the way up since ETH confirmed the key support was good. Today’s volume is lagging behind, which also explains why the price lost some of the momentum. Buyers need to return if ETH is to continue higher.
RSI: The bullish divergence on the daily RSI has helped the price get back on the uptrend. So far, the RSI failed to make a higher high, which would be an important sign to turn the downtrend around.
MACD: The daily MACD is curving back up nicely, but a bullish crossover is still a few days away. Buyers need to maintain the pressure if ETH is to go higher.
The bias for ETH is neutral. Despite the bullish price action, it is too early to be positive for the medium term.
Short-Term Price Prediction for ETH
The current positive market sentiment may not last as the larger medium-term trend remains bearish with lower lows and lower highs. If ETH is able to move above $4,000, then the downtrend would be over. Until then, it’s important to stay vigilant.