The second largest token, Ethereum, has been closely following the largest cryptocurrency as the BTC price recovery has resumed, and the ETH rally has begun. The token has regained crucial support at around $3100 after marking a low of around $2800. While the market participants remain bullish over the crypto, the ETH price appears to be preparing to trap the bulls at higher levels.
The ETH price is known for a slow yet steady trade without experiencing massive price variations. Therefore, traders remain highly optimistic about the token, as it shows higher chances of achieving fresh highs in the short while. Now that the ETH price has been trading in a short-term bearish trend, this is when it may turn bullish to secure higher targets to trap the bulls.
The Ethereum price has been trading within a descending parallel channel soon after experiencing a rejection from the yearly highs. This has also invited huge bearish opportunities as the selling volume has piled up to a large extent. However, a minor chance of a bullish continuation persists by the formation of an inverted hammer. An inverted hammer red hammer is usually considered a bullish indicator as the buyers are trying to put more pressure on the market.
Read Also : Ethereum Advisor Steven Nerayoff Alleges Government Extortion in EthGate Scandal
On the other hand, the next course of action for the ETH price remains indecisive as the DMI is unclear. All the levels have plunged, including the ADX, which is heading towards the lower support while the +Di & -Di are about to undergo a bearish cross-over. The trading volume has also been turning in a bearish direction, indicating more drain may be on the horizon before a major rebound.
In a larger perspective, the Ethereum price may, however, maintain an ascending trend to reach the upper resistance above $3500. Here, the bullish strength may fall apart, enabling the bears to intensify their action. This could propel the ETH price back towards the upper resistance and if bulls display strength, a breakout could be imminent.
Also Check Out : Ethereum & Cardano Displaying Acute Weakness Against Bitcoin, Has AltSeason 2024 Differed?
Was this writing helpful? No Yes
Read More
