Read U.TODAY
google news
Ethereum is above $3,000 and above the 100 EMA, but despite the breakout, we could see a bearish reversal on the ETH/USD price chart. While this rally is positive, it does show signs that there may not be enough momentum to break out of the 26 EMA convincingly. This short-term moving average is proving to be a stiff resistance for the second-largest cryptocurrency, but it shouldn’t be.
Unfortunately, the trading volume of Ethereum is on the decline. A downward trend in volumes could be a red flag, suggesting fuel may be in short supply due to recent price increases. Volume often confirms market trends, but the absence of volume during an uptrend is problematic. Small price increases may indicate a lack of buyer commitment and, in some cases, current price action may not be sustainable.
If it can gather strength to break out of the 26 EMA resistance near $3,236, we could see a more decisive move towards higher levels. However, if that fails, there is a risk that prices will fall again. The next important support level is near $2,890, which could be a potential landing spot for the price.
Ethereum’s immediate future is uncertain. Volume needs to increase to support the current rally. Without that, the recent $3,000+ may not perform as many expect.
Ethereum has seen some rally, but current trading volume raises questions about whether it will stay above $3,000 for much longer. Without a convincing surge in trading volume and market liquidity, the chances of the rally continuing are almost non-existent.
About the author
Armand Sirignan
