Ethereum is seeing small price increases in reaction to the current sentiment in the crypto market. This comes after it dropped to a low of $2,867 from its opening price of $3,065. The latest improvement in price will mark the second green of the week.
This comes as no surprise as a previous outlook pointed to a retracement to $2,800 before the current intraweek session runs out. Nonetheless, Ether’s price hike is supported by a notable increase in trading volume. Over the last 24 hours, it has seen a more than 20% surge in this value. Many ethereum proponents were also thrilled that blockchain fees are not the highest in the market.
However, regardless of the most recent change in price, the altcoin is yet to break from its trend. Over the last three days, the coin has been range bound between $2,900 and $3,126. Although it briefly broke low, it failed to do the same for the resistance amid reports of notable buying volume.
Ethereum Breakout is Imminent
Indicators are printing buy signals at this time. The Moving Average Convergence Divergence is hinting at further price increases. The 12-day EMA is almost parallel after more than seven days of downtrend. If the bulls continue soaking up the excess supply, it will start a bullish convergence.
The Accumulation and Distribution Channel suggests an impending breakout from ETH’s trend. The metric is surging, but not in relation to price. When this happens, prices will catch up to the direction of the A/D. Pointing to when this will happen, the Relative Strength Index although still below 50 climbed above 40.
If the bulls hold the current buying momentum, ETH will flip the $3,126 resistance. Price movement shows that on breaking out, the apex altcoin will aim to gain stability above $3,200 as historically, it is another mark with demand concentration.
On the other hand, if ether reverts to its downtrend, it’ll retest $2,800 after flipping $2,900. The pivot point places the next critical support at $2,500 which may indicate further price decline with massive magnitude.
