- ETH wants to break through the resistance.
- The bulls supported the coin’s uptrend with numerous markers found on the daily chart.
Major altcoin Ethereum [ETH] is poised to break above the descending channel, suggesting a decline in selling pressure.
At $3,100 at the time of writing, the coin has increased in value by almost 10% in the last week, according to CoinMarketCap. This growth reflects the overall rise in the cryptocurrency market over the past seven days.
According to CoinGecko, the global cryptocurrency market capitalization surged by 9% during this period.
Will ETH be successful?
A descending channel forms when an asset price continues to make lower highs and lower lows, indicating a broader downward trend.
ETH started trending within this channel on March 12th and has seen its price decline by 20% since then.
The market witnessed a surge in new liquidity inflows as the coin advanced towards the upper line of the channel that has been forming a resistance level since March.
Supporting this is ETH's Chaikin money flow, which recently surpassed the zero line and was trending upward at the time of writing. This indicator measures the flow of funds into and out of the coin market.
This increase in the CMF of an asset indicates that there is more buying pressure than selling pressure in the market. This is often due to a surge in trading volume that drives asset prices to new highs.
Over the past 7 days, ETH daily trading volume has increased by 40%. Santimento's data.
Showing a growing bullish presence, ETH’s positive directional index (green) exceeded the negative index (red) on May 17th.
Such a reading from an asset's Directional Movement Index (DMI) indicates a bullish rise in the market.
Additionally, the Elder Ray Index value for this coin was positive at the time of this writing.
Source: ETH/USDT on TradingView
This indicator measures the relationship between the strength of buyers and sellers in the market. If a positive value is returned, it means bullish forces are controlling the market.
read ethereum [ETH] Price prediction for 2024-2025
If the ETH bulls are successful and break above the upper line of the descending channel, the next price point for the coin will be above $3,200.
Source: ETH/USDT on TradingView
However, if selling pressure increases and a downtrend begins, the price is expected to fall towards the support at $2,775.
