#HighlightPosts# Ethereum (ETH) Up 10% in a Week, But Trend Signals Are Fragile
Ethereum is up more than 10% in the last seven days as the market shows signs of a resurgence. However, key technical indicators suggest weakening trend strength and cautious optimism from buyers. ETH is battling critical resistance areas that could determine whether the rally continues or fizzles out. With momentum still fragile, May could be a defining month for Ethereum’s next big move. Ethereum’s Trend Is Weakening Sharply, Bears Are Closing In Ethereum’s DMI chart shows its ADX currently at 24.91, a sharp drop from 39 two days ago. The ADX, or Average Directional Index, measures the strength of a trend, whether it is bullish or bearish. Generally, an ADX reading above 25 indicates a strong trend, while readings below 20 indicate the market is entering a period of weakness or sideways movement. The sharp decline in the ADX suggests that Ethereum’s recent momentum is rapidly losing steam. Without renewed buying or selling pressure, ETH could be stuck in a more volatile, sideways pattern in the short term. Meanwhile, the direction indicators are showing a clear change. The +DI, which tracks bullish pressure, has fallen to 22.71, down from 31.71 three days ago and 27.3 yesterday. In contrast, the -DI, which tracks bearish pressure, has risen to 17.68, up from just 7.16 three days ago and 15.64 yesterday. Yesterday, the gap between buyers and sellers was almost closed, with the +DI at 20.91 and the -DI at 20.1, suggesting that sellers have almost regained control of the market. This increasing bearish momentum and weakening trend strength increases the risk that Ethereum’s price will fall further if buyers fail to defend key levels. However, if the bulls can hold their ground and regain momentum, ETH could still make an attempt at a recovery. ETH RSI Rises After Sharp Drop: Will Recovery Continue? Ethereum’s RSI is currently at 56, up from 45.5 a day ago and reaching 70.46 four days ago. The Relative Strength Index (RSI) is a momentum indicator that measures the speed and magnitude of price movements. Typically, an RSI above 70 indicates that an asset is overbought and due for a pullback, while an RSI below 30 indicates oversold conditions and potential for a recovery. Readings between 30 and 70 are considered neutral, while levels around 50 usually indicate the market is at a decision point. The sharp swings in Ethereum’s RSI reflect the volatile sentiment around ETH in recent days. With the RSI back at 56, Ethereum has regained its momentum after falling from neutral to bearish territory. A reading above 50 is slightly bullish, suggesting that buyers have regained some control, but not overwhelmingly so. If the RSI continues to climb towards 60 and beyond, this could signal a renewed rally for ETH prices. However, if the momentum stalls again and the RSI reverses, this could indicate that the recovery is losing momentum and Ethereum could be heading back into a broader price recession or even a correction phase. Ethereum Struggled with Critical Resistance: Bullish or Bearish? Ethereum price has made several attempts to break above the $1,828 resistance level in the past few days. If ETH manages to break and hold decisively above this level, it could open the door for a stronger upward move. The next major target would be $1,954, and if the bullish momentum remains strong, a further rally towards $2,104 could follow. Ethereum could eventually test $2,320 in a more aggressive uptrend, which would signal a significant bullish expansion. These levels will be key to watch as they could define the strength and sustainability of any breakout in the coming days. On the downside, if Ethereum cannot sustain its current levels and the trend reverses, the first critical support to watch is at $1,749. A break below this could trigger a lower move towards $1,689. If selling pressure increases, ETH could extend its downtrend further and key support levels at $1,537 and $1,385 could come into play. A loss of these levels would signal a deeper correction and suggest that the recent attempts at a recovery were only temporary before a more prolonged bearish phase.
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#HighlightPosts# Ethereum (ETH) Up 10% in a Week, But Trend Signals Are Fragile
Ethereum is up more than 10% in the last seven days as the market shows signs of a resurgence. However, key technical indicators suggest weakening trend strength and cautious optimism from buyers.
ETH is battling critical resistance areas that could determine whether the rally continues or fizzles out. With momentum still fragile, May could be a defining month for Ethereum’s next big move.
Ethereum’s Trend Is Weakening Sharply, Bears Are Closing In
Ethereum’s DMI chart shows its ADX currently at 24.91, a sharp drop from 39 two days ago. The ADX, or Average Directional Index, measures the strength of a trend, whether it is bullish or bearish.
Generally, an ADX reading above 25 indicates a strong trend, while readings below 20 indicate the market is entering a period of weakness or sideways movement.
The sharp decline in the ADX suggests that Ethereum’s recent momentum is rapidly losing steam. Without renewed buying or selling pressure, ETH could be stuck in a more volatile, sideways pattern in the short term.
Meanwhile, the direction indicators are showing a clear change. The +DI, which tracks bullish pressure, has fallen to 22.71, down from 31.71 three days ago and 27.3 yesterday.
In contrast, the -DI, which tracks bearish pressure, has risen to 17.68, up from just 7.16 three days ago and 15.64 yesterday. Yesterday, the gap between buyers and sellers was almost closed, with the +DI at 20.91 and the -DI at 20.1, suggesting that sellers have almost regained control of the market.
This increasing bearish momentum and weakening trend strength increases the risk that Ethereum’s price will fall further if buyers fail to defend key levels. However, if the bulls can hold their ground and regain momentum, ETH could still make an attempt at a recovery.
ETH RSI Rises After Sharp Drop: Will Recovery Continue?
Ethereum’s RSI is currently at 56, up from 45.5 a day ago and reaching 70.46 four days ago. The Relative Strength Index (RSI) is a momentum indicator that measures the speed and magnitude of price movements.
Typically, an RSI above 70 indicates that an asset is overbought and due for a pullback, while an RSI below 30 indicates oversold conditions and potential for a recovery.
Readings between 30 and 70 are considered neutral, while levels around 50 usually indicate the market is at a decision point. The sharp swings in Ethereum’s RSI reflect the volatile sentiment around ETH in recent days.
With the RSI back at 56, Ethereum has regained its momentum after falling from neutral to bearish territory. A reading above 50 is slightly bullish, suggesting that buyers have regained some control, but not overwhelmingly so.
If the RSI continues to climb towards 60 and beyond, this could signal a renewed rally for ETH prices.
However, if the momentum stalls again and the RSI reverses, this could indicate that the recovery is losing momentum and Ethereum could be heading back into a broader price recession or even a correction phase.
Ethereum Struggled with Critical Resistance: Bullish or Bearish?
Ethereum price has made several attempts to break above the $1,828 resistance level in the past few days. If ETH manages to break and hold decisively above this level, it could open the door for a stronger upward move.
The next major target would be $1,954, and if the bullish momentum remains strong, a further rally towards $2,104 could follow. Ethereum could eventually test $2,320 in a more aggressive uptrend, which would signal a significant bullish expansion.
These levels will be key to watch as they could define the strength and sustainability of any breakout in the coming days.
On the downside, if Ethereum cannot sustain its current levels and the trend reverses, the first critical support to watch is at $1,749. A break below this could trigger a lower move towards $1,689.
If selling pressure increases, ETH could extend its downtrend further and key support levels at $1,537 and $1,385 could come into play.
A loss of these levels would signal a deeper correction and suggest that the recent attempts at a recovery were only temporary before a more prolonged bearish phase.