Technical Factors Favor the Ethereum Price Surge: Checkout the Details
Ethereum price has oscillated between $3841 and $3703 throughout the last week with no price improvement despite the Ethereum ETF approval. The price has not been on the move for two weeks now, questioning the influence of this cryptocurrency in the market. Almost every other crypto is bullish now with the increased greed in the market. However, that is about to change as the technical factors hint at the upcoming rally for Ethereum.
In this blog, let us discuss whether Ethereum’s price can surge anytime soon or not.
Bullish Outlook For Ethereum Price
The market sentiments are quite bullish for the Ethereum per the fear and greed index, indicating the increasing demand today. Moreover, the 10% surge in its trading volume, which has brought the value to $14.6 Billion, is also favoring the same.
Additionally, following the Bitcoin rise, Ethereum price has begun to improve and is currently trading at $3,798.61 after a $0.9% increase in value from yesterday. It is because the simple and exponential moving averages at almost all levels have identified Ethereum in the buying zone, highlighting the increased interest among people.
Moreover, the Relative strength index is at 63.1, which explains the equilibrium between the buying and selling pressure on Ethereum. As long as the index value doesn’t rise any higher, the Ethereum price is to stay stable on the current averages. And if the altcoin maintains the ongoing surge, the ETH price might hike to $3,946.
Lastly, QCP Capital, a trading firm based in Singapore, has reported the ETH options volume rising higher than the Bitcoin. This rise is a bullish factor, which can surge the ETH price further.
Ethereum’s Declining DEX Volume Might Interfere With Price
In the last seven days, the decentralized exchange volume has declined by $2 Billion. Earlier on the 28th of May, the DEX volume was around $3.34 and is currently at $1.03 billion only, causing concerns about the demand for the altcoin.
A crypto trader, SuperBro, has also expressed the same concerns as he analyzed the Ethereum buying data. As per his analysis, 1.81 million addresses bought 1.66 million ETH in the average range of $3,820 and $3,700, which is at the low end. If the value stayed the same without any further buying on the same, Ethereum’s price might stay stable for some more. However, if the buying value decreases, the ETH price might decline, finding support around $3,580 and $3,462.
Based on the IOMAP, over 1.81 million addresses bought around 1.66 million $ETH between $3,820 and $3,700. This demand zone could keep #Ethereum’s price at bay amid increasing selling pressure.
But if it fails to hold, the next key area of support is between $3,580 and $3,462 pic.twitter.com/rCYOV4FAYH
— Super฿ro (@SuperBitc0inBro) June 5, 2024
Lastly, the Moving Average Convergence Divergence and the momentum indicators also talk of the increased selling pressure for ETH in the market. On continuing, the same Ethereum price may see a little more fluctuations before regaining value.
Final Thoughts
For now, the major technical factors favor the Ethereum price surge, but the next 24 hours might be very crucial for this altcoin. Investors can focus on the bullish sentiments for the Ethereum and RSI data to analyze how the charts will move next.
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