ethereum price has gradually declined since mid-March and has yet to show any decisive signs of recovery.
However, today's price action is critical as it may finally return some bullish momentum to the market.
Technical analysis
The daily chart
As for the daily time frame, ethereum price has been trending down within a large descending channel and has yet to break it to either side.
Meanwhile, the cryptocurrency is currently testing the midline of the range and the key $3,000 level. With the 200-day moving average located near the $2,800 support zone, the market seems more likely to rally towards the $3,600 resistance zone in the coming weeks.
The 4 hour chart
The 4-hour chart shows a clearer picture. ethereum price has increased rapidly since yesterday, but is currently holding on to the midline of the channel and the $3,000 resistance level.
Meanwhile, the RSI is showing values above 50% at the moment, indicating that the momentum is in favor of the buyers. Therefore, a break above the midline of the channel could lead to a quick rally towards the $3,600 resistance area.
Analysis of feelings
exchange reserve
ethereum price has been on a downward trajectory since its rejection of the $4,000 level. Meanwhile, analyzing market supply and demand dynamics can yield important insights.
This chart presents the Exchange Reserve metric and its 30-day trailing surplus for ethereum. Rising values are usually associated with an increase in selling pressure, as they generally indicate that deposits are being exchanged by holders who wish to sell their coins.
As the chart demonstrates, the foreign exchange reserves metric has seen an overall decline over the past few months. However, the metric recently surpassed its moving average, a sign that unusual selling has previously materialized during price declines or reversals. Therefore, investors must hope that supply is met by sufficient demand, or things could turn ugly soon.
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Cryptocurrency charts by TradingView.
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