Ethereum recently broke out of its bearish price action after settling below periodic moving averages. The onus was on the largest altcoin in the market to set its tone after Bitcoin also rallied on Monday. As Ethereum crossed the $2000 market again, Bitcoin surged to a week-long high of $34,000.
Last week’s bearish trend had triggered ETH sell-offs that prompted many naysayers to throw shade at the cryptocurrency. The latest climb was proof that the market was undergoing corrections just as seen in the S&P industry. After witnessing double-digit drops, Ethereum has recovered in the last 24 hours by a significant 9 percent.
At press time, ETH was trading for $2001 with a total market cap of $232 billion. Although this was miles ahead of Bitcoin, Ethereum’s market cap was more than the combined caps of USDT, BNB, ADA, DOGE, and XRP.
ETH 1 hour:
Ethereum’s Parabolic SAR stayed below the price candles: a situation that glowed positive for investors. A bullish uptick showed by the PSAR also elevated the immediate resistance to $2001. The Relative Strength Index re-entered the price zone and settled near the overbought zone. If the RSI’s parallel hold remains, ETH is in for a good price spell.
Even the Chaikin Money Flow indicator followed in the footsteps of the RSI after moving sinusoidally. Although the graph was a good distance away from the zero line, it would do well for the cryptocurrency to have more capital flowing in.
ETH 1 day:
In the long term, Ethereum registered a slight improvement in sustained price holds. Although the support broke recently, the cryptocurrency showed signs of quick recovery to go past the $2000 mark. As it stands, Ethereum has to remain vigilant about the support that was formed in March.
The CMF in the long term dipped below the zero line. This phenomenon has occurred only twice since December of 2020, with the last two happening in the space of 40 days. If no brakes are applied on the capital leaving the market, Ethereum may be looking at a slow recovery.
Ethereum’s long-term RSI struggled to break away from the oversold zone but alas the bear’s pull remained strong. The RSI was at its lowest since the beginning of the year with analysts predicting a bull run to overturn the trend. Even the Parabolic SAR sided with the bear as the pressure accumulated below the price candles. This trend usually continues till the price capitulates during the upcoming market week.