Ethereum
Technical Factors Favor Ethereum Price Surge: See Details
Ethereum price has fluctuated between $3,841 and $3,703 over the past week, with no price improvement despite the Ethereum ETF approved. The price has not moved for two weeks now, calling into question the influence of this cryptocurrency on the market. Almost all other cryptocurrencies are now bullish due to increased market greed. However, this is about to change as technical factors suggest Ethereum’s next rally.
In this blog, let’s discuss whether Ethereum price can rise soon or not.
Bullish outlook for Ethereum price
Market sentiments are rather optimistic for Ethereum according to the fear and greed index
, indicating the growing demand today. Moreover, the 10% increase in its trading volume, which took the value to $14.6 billion, also favors the same.
Furthermore, following the rise of Bitcoin, Ethereum Price started to improve and is currently trading at $3,798.61 after a 0.9% increase in value from yesterday. Indeed, simple and exponential moving averages at almost every level have identified Ethereum in the buying zone, highlighting people’s increased interest.
Additionally, the Relative Strength Index is at 63.1, which explains the balance between buying and selling pressure on Ethereum. As long as the index value does not increase, the price of Ethereum should remain stable compared to current averages. And if the altcoin maintains its continued rise, the ETH price could reach $3,946.
Finally, QCP Capital, a Singapore-based trading firm, reported that ETH options volume was higher than Bitcoin. This increase is a bullish factor, which can further increase the price of ETH.
Ethereum DEX Volume Drop Could Interfere With Price
Over the past seven days, decentralized exchange volume has decreased by $2 billion. Earlier on May 28, DEX volume was around $3.34 and currently stands at just $1.03 billion, raising concerns about altcoin demand.
A crypto trader, SuperBro, also expressed the same concerns while analyzing Ethereum purchase data. According to his analysis, 1.81 million addresses purchased 1.66 million ETH in an average range of $3,820 and $3,700, which is on the low end. If the value remained the same without any further purchases, the price of Ethereum could remain stable for a while longer. However, if the buy value declines, ETH price could decline, finding support around $3,580 and $3,462.
Based on IOMAP, over 1.81 million addresses purchased approximately 1.66 million $ETH between $3,820 and $3,700. This demand area could retain #EthereumThe price is at bay amid increasing selling pressure.
But if it doesn’t hold, the next key area of support lies between $3,580 and $3,462. pic.twitter.com/rCYOV4FAYH
– Superro (@SuperBitc0inBro) June 5, 2024
Finally, the Moving Average Convergence Divergence and momentum indicators also speak of increased selling pressure for ETH in the market. Continuing, the same Ethereum price could see a little more fluctuation before regaining value.
Final Thoughts
For now, the main technical factors favor the Ethereum price surge, but the next 24 hours could be very crucial for this altcoin. Investors can focus on bullish sentiments regarding Ethereum and RSI data to analyze further chart action.