Ethereum reclaims $3,300 a few hours ago as the broader crypto market shows notable bullish sentiment following the three-day downtrends.
The global cryptocurrency market cap gained almost 3% over the last 24 hours, with several altcoins seeing notable increases. Assets like ETC and ENS are up by nearly 4% and 5%, respectively. The latter token reclaimed erased the previous day’s losses but grapples with small selling congestions.
The ETH/USD pair gained almost 3%, erasing Thursday’s decline. The apex altcoin dipped to $3,157 but rebounded and closed at $3,218 during the previous intraday session.
Although Ethereum is off to a rocky start this January, it sees a surge in new wallet creation. Santiment reports that the asset’s HODLers increased by 645,000 since the year started. The fast addition of addresses shows the community’s confidence in the project for the long term.
Data from CryptoQuant reveals several positive metrics that may indicate further increases. The exchange reserves are declining. It dropped by 0.13% in the last 24 hours as buying resumed. The latest change in reserve is notable as the buyers fully soak up the over 2% increase it had on Tuesday.
Trading platforms recorded negative netflows as investors move their assets off exchanges. Active addresses soared by 4%, with transactions seeing a similar increase.
The positive sentiment spread across several regions, with Asian traders showing more substantial buying pressure than the previous day. US investors are showing a similar resolve as the Coinbase premium flips positive.
ETH is not out of Danger
Although Ethereum is seeing notable positive price changes, the continuation of the uptrend is not guaranteed—the market braces for a possible negative consumer price index. Coming next week, the asset may see lesser trading volume as the present week ends.
The ETH/USD may start on Monday with a bearish trend. Nonetheless, anticipation of the inauguration may cause the effect of the dips to fade.
Ethereum Will Reclaim $3,400
Several indicators on the one-day chart are yet to respond to the latest price improvements. Nonetheless, the relative strength index is on the rise. It is at 42 as buying pressure increases. This is the same reading on the accumulation and distribution chart. It reveals that the bulls are gradually soaking up the excess supply.
Other metrics like the moving average convergence divergence, remain pessimistic. A few days ago, it had a negative interception, with the 12-day EMA continuing downwards. The metric is yet to respond to the ongoing buybacks.
Nonetheless, a bullish convergence may be underway if the bulls sustain the ongoing trend.
Bollinger bands point to an impending uptrend. The ETH/USD pair dropped and tested the lower band during the previous intraday session. An asset dropping to this level indicates it is seeing massive selling pressure and is due for a rebound.
Ethereum may continue the upticks in the coming days following its retest of the lower SMA. The uptrend may see it reclaim the middle band above $3,400.
The pair is trading above its 50% fib level, a critical mark. ETH trended between $3,300 and $3,400 after it found support at this price level. A repeat of this trend will guarantee the same result. It is worth noting that the pivot point standard hints at a surge above $3,500.
Nonetheless, the asset risks dropping below $3,200 as it failed to break the $3,300 barrier decisively.
