Ethereum has remained resilient, holding above the critical $1,800 level. As of the latest data, ETH is trading at $1,807.23, showing a modest gain of 0.48%. This recent price increase comes with a significant uptick in 24-hour trading volume, which surged to $11.27 billion, a rise of 21%. This jump in volume suggests that there is growing investor interest and market participation.
Crypto analysts are leaning towards a bullish outlook, indicating that Ethereum’s price action continues to show signs of strength. The price is forming higher lows, which points to a continuation of upward momentum.
However, caution is warranted as the Relative Strength Index (RSI) is currently at an overbought level of 76.87. This suggests that Ethereum may be due for a slight pullback before any significant rally can occur. The current market conditions show that while the trend is bullish, traders should remain cautious of potential corrections.
MACD supports bullish trend for Ethereum
Ethereum is now testing a key pivot level at $1,806. Resistance is close by at $1,824, which could present a challenge for bulls looking to push higher. The tight Bollinger Band width of 4.03% indicates that Ethereum’s price has been consolidating, and a strong move, either up or down, could be imminent. The compression in volatility suggests that traders should prepare for potential price expansion soon, as the market is likely building momentum for a breakout.
In addition to the narrowing Bollinger Bands, the declining volume profile, down by 14%, points to decreasing participation in the market. This reduced interest could indicate that Ethereum is nearing a consolidation phase before the next major price move.
The MACD supports the bullish trend with a strong divergence between the MACD line and its signal line.
Traders should watch for a pullback. A potential long entry could come from a retest of the $1,783 support level (S1), but with tight stops below $1,770 to manage risk effectively.
$380 Million worth of ETH withdrawn from exchanges
In a significant trend, about $380 million in Ethereum was pulled out of exchanges last week. This significant withdrawal indicates a change in investor sentiment as many are taking their ETH to self-wallets. Such trends generally indicate a longer-term investment approach as the investors do not intend to sell their holdings in the near future. The five-day continuous outflow illustrates increasing optimism about the future of Ethereum.
These outflows are also significant to the price trend of Ethereum . With more ETH removed from the exchanges, there’s less supply. Less supply may increase price volatility and support a bull trend because there are fewer coins on the market that have instant selling pressure.
Historically also, the same outflows have preceded price upticks. This trend alone should therefore be a consideration to watch. The conjunction of solid technical signals and diminishing sell-side liquidity puts Ethereum in a good position to have a price increase in the near future.
