Ethereum (ETH), a leading altcoin, is almost ready to break through the upper line of its descending range. This could mean that selling pressure is lessening. CoinMarketCap says that ETH’s value has gone up almost 10% in the last week, putting it at $3,100 at press time.
Based on data from CoinGecko, this growth is in line with the general 9% rise in the crypto market during the same time period.When the price of an asset regularly makes lower highs and lower lows, a descending channel forms. This shows that the trend is going down.
The price of ETH has dropped 20% since March 12, when it started to move in this trend. But recent changes in the market point to a possible shift. There is more curruncy coming into the market as ETH gets closer to the upper limit of this channel, which has been a barrier since March.
Ethereum’s Trading Volume Surge
It seems like people are optimistic because ETH’s Chaikin Money Flow (CMF) has recently gone above the zero line and is now going up. The CMF keeps track of how much currency comes into and goes out of the market for an object. A rising CMF means that there is more pressure to buy than to sell. This is usually because more people are trading the object, which drives up its price.
It is said that the everyday trading volume of ETH has increased by 40% in the last week. The Directional Movement Index (DMI) for Ethereum also shows that trade has picked up. When the positive directional index (green) went above the negative index (red) on May 17, it meant that the market was going up.
At the time of this writing, the Elder-Ray Index for ETH also has a positive number. This signal checks how strong the balance is between buyers and sellers in the market. A positive Elder-Ray Index means that buying power is strong, which makes it more likely that prices will keep going up.
The market is still guarded, though. If there is more selling pressure, Ethereum could give up its gains and drop back to the support level at $2,775. This possible drop in prices shows how important it is to keep an eye on key factors and market trends to guess how prices will move in the future.
