Ethereum
ETH Bull Run Hopes Rekindled as Bulls Test $3,000 Resistance (Ethereum Price Analysis)
The price of Ethereum has been in gradual decline since mid-March and has yet to show any decisive signs of recovery.
Still, today’s price action is crucial, as it can finally restore bullish momentum to the market.
Technical analysis
By TradingRage
The daily chart
Looking at the daily time frame, Ethereum price has been trending downward in a wide descending channel and is yet to break through the line to either side.
Meanwhile, the cryptocurrency is currently testing the range’s midline and the key $3,000 level. With the 200-day moving average located near the $2,800 support zone, the market seems more likely to rally towards the $3,600 resistance zone in the coming weeks.
The 4-hour chart
The 4-hour chart paints a clearer picture. Ethereum price has been rising rapidly since yesterday, but is currently held by the channel’s midline and the $3,000 resistance level.
Meanwhile, the RSI is currently showing values above 50%, indicating that momentum is in favor of buyers. Therefore, a break above the midline of the channel could lead to a rapid rally towards the $3,600 resistance zone.
Sentiment analysis
By TradingRage
Foreign exchange reserve
Ethereum price has been on a downward trajectory since its rejection from the $4,000 level. At the same time, analyzing the supply and demand dynamics of the market can provide important insights.
This chart shows the FX reserve metric and its 30-day rolling surplus for Ethereum. Rising values are usually associated with an increase in selling pressure, as it usually indicates that deposits are being exchanged by holders who wish to sell their coins.
As the chart shows, the measure of foreign exchange reserves has seen an overall decline in recent months. However, the measure recently rose above its moving average, a sign that unusual selling has already materialized during price declines or reversals. Therefore, investors must hope that the supply will be met by sufficient demand, otherwise the situation could deteriorate soon.
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