Ethereum (ETH) Momentum Analysis: Will $2.9K Hold or Break?

Summary:
Ethereum (ETH) has recently gained over 3.73% in value within the last 24 hours. Currently trading around $2,959, it faces key support and resistance levels that could determine its next trend. As market data shows increased trading volume and mixed momentum indicators, ETH's future price movements remain uncertain.

Key Takeaways

Ethereum (ETH) has risen by over 3.73% in the past day.
Current trading range is approximately $2,777.12 to $2,994.55.
Market cap for ETH is $356.61 billion with a daily trading volume of $37.15 billion.
Short-term momentum indicates mixed signals with potential for both bullish and bearish movements.

Ethereum (ETH) Momentum Analysis: Will $2.9K Hold or Break?

Current Price Overview

In the latest updates, Ethereum has shown a notable gain of over 3.73% in just 24 hours. The price fluctuated between lows of about $2,777.12 and highs of $2,994.55. If bullish momentum continues to build, it could lead to the formation of a bullish trend line. However, if these attempts fail, Ethereum might lose momentum in the market.

As of now, Ethereum is trading around $2,959, with a market capitalization standing at $356.61 billion. Additionally, there has been a significant uptick in daily trading volume, which has risen by over 44.72% to reach $37.15 billion. According to Coinglass, approximately $158.28 million worth of Ethereum has been liquidated in the past 24 hours.

Analyzing Ethereum's Momentum Shift

Looking closer at Ethereum’s metrics, the Moving Average Convergence Divergence (MACD) line, along with the signal line, currently sits below the zero line, indicating bearish momentum. This suggests that the short-term price trends are weaker compared to longer-term trends.

On a more positive note, the Chaikin Money Flow (CMF) indicator is at 0.06, indicating slight buying pressure in ETH, which reflects an initial phase of accumulation, although not robust enough to confirm a strong uptrend.

ETH chart (Source: TradingView)

With the ongoing correction, Ethereum's price could potentially retrace to the support level at $2,947. If bearish pressure escalates, it might trigger a death cross that could push prices below the $2,935 threshold. On the flip side, should Ethereum swing toward bullish momentum, it could rise and test resistance at the $2,971 level. A breakout beyond this point could signal a significant upward shift, leading to a golden cross and pushing the price toward $2,983.

Additionally, the Bull Bear Power (BBP) reading for ETH at 101.29 reflects strong bullish dominance in the market, indicating positive upside momentum. Higher readings might indicate an overextended condition. Furthermore, Ethereum’s daily Relative Strength Index (RSI) is currently at 52.40, suggesting a neutral momentum. This means neither buyers nor sellers dominate the market, a situation often seen during consolidation phases.

Recent Updates in the Crypto Market

Bitcoin Cash (BCH) is also worth noting, as it builds momentum and could potentially hit the $600 mark by the end of the day.