Ethereum
Ethereum (ETH) Slips Below Key Average, Bears Take Control
Ethereum (ETH) price briefly traded above its 20-day exponential moving average (EMA) during the May 15 trading session, suggesting a momentary decline in selling pressure.
However, as the bullish pressure lost momentum, the bears initiated a downtrend, causing the altcoin’s price to trade below this key moving average at press time.
Ethereum bulls haven’t given up yet
When an asset is trading above its 20-day EMA, it is considered a bullish signal because it means its current price has risen above its average price of the last 20 days. Market participants interpret it as an evolution towards the accumulation of coins.
ETH’s brief move above the 20-day EMA suggested that the bulls momentarily regained control of the market before losing it to the bears. Despite this, bullish sentiments abound in the market.
At the time of writing, the weighted sentiment of the coin is 0.32. This metric measures the social sentiment surrounding an asset. When its value is positive like this, it indicates that the asset has a generally bullish outlook on social media.
Weighted Ethereum sentiment. Source: Feeling
Additionally, Elder-Ray Index readings of the coin show that it returns a positive value at the time of writing. This indicator measures the relationship between the strength of buyers and sellers of ETH in the market.
When its value is positive, bullish power dominates the market. At the time of writing, ETH’s Elder-Ray Index was at 46.46.
Learn more: How to invest in Ethereum ETFs?
ETH Price Prediction: Bears Won’t Give Up Easily
Although the parameters evaluated above suggest the presence of bullish activity in the ETH market, it is commonplace to note that its price evaluated on a daily chart remains inside a descending triangle. This is generally considered a bearish signal.
A descending triangle forms when the price of an asset reaches a series of lower highs. When this happens, a certain price level forms support. In the case of ETH, that’s the price of $2,864.
If the bearish pressure increases and the coin erases its recent gains, its price could drop below $3,000 to trade in the $2,800 price zone.
Learn more: Ethereum (ETH) Price Prediction 2024/2025/2030
However, if this projection is invalidated and the coin breaks above the upper trendline of this triangle, it could trade above $3,100 in the near term.
Disclaimer
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