In summary
Ethereum’s price increased by 4% in 24 hours but is still down 17% over the month, with $3,000 acting as a crucial support level.
The decline in RSI from 68.9 to 54.8 reflects weakening bullish momentum, suggesting a potential for consolidation or a minor correction.
The Directional Movement Index (DMI) shows decreasing trend strength and rising bearish pressure, signaling challenges to the sustainability of ETH’s upward trend.
Trade with leverage, NO KYC required, and receive rewards up to $1030.Go to BingX now.
The price of Ethereum (ETH) has increased by over 4% in the past 24 hours, although it is still down 17% over the past 30 days. In recent days, ETH has managed to stay above the $3,000 mark, a crucial psychological and technical area that could influence its next move.
Indicators such as the Relative Strength Index (RSI) and the Directional Movement Index (DMI) suggest that although ETH has shown recent bullish signs, that strength appears to be waning. Whether ETH can reclaim an upward trend or faces further correction depends on its ability to hold crucial support levels and break through nearby resistance zones.
ETH’s RSI Falls from Overbought Levels
The Relative Strength Index (RSI) is currently at 54.8, after reaching a low of 22.2 three days ago and peaking at 68.9 just one day ago. This movement indicates a rapid shift in momentum, as ETH went from oversold conditions to near overbought levels before settling near neutral. The decline in RSI from 68.9 to 54.8 suggests that bullish momentum is cooling off, as sellers have gained some ground after the recent surge
The RSI, a momentum oscillator, measures the speed and magnitude of price movements on a scale of 0 to 100. Typically, an RSI below 30 signals oversold conditions and the potential for a price reversal to the upside, while an RSI above 70 indicates overbought conditions, often preceding a price correction.
With the current RSI at 54.8, it sits in the neutral zone, implying a balance between buying and selling pressure. However, the decline from 68.9 could suggest that the recent rally is losing steam, potentially indicating a period of consolidation or a minor correction unless new bullish catalysts emerge to reignite upward momentum.
Ethereum’s Uptrend May Be Fading
Ethereum’s DMI chart shows that the current ADX is 21.9, down from 39 three days ago, indicating a significant decline in trend strength. The +DI has decreased to 27.2 from 34.1 one day ago, suggesting weakening bullish momentum, while the -DI has increased to 26.5 from 18.2, signaling rising bearish pressure. This combination reflects a market where buyers are losing dominance and sellers are becoming more active
The ADX measures trend strength, with values above 25 indicating a strong trend and those below 20 signaling a weak or indecisive market. Currently, the ADX is near 21.9, which suggests declining strength in ETH’s price attempt to establish an uptrend.
With the +DI only slightly above the -DI, the balance of power is shifting, suggesting that unless bullish momentum recovers, ETH may struggle to sustain an upward trajectory and could enter a consolidation phase or face a potential correction.
ETH Price Prediction: Will it Reclaim $4,000 in January?
Ethereum’s price is currently attempting to establish a strong upward trend, with shorter-term moving averages trying to cross above longer-term ones, a classic bullish signal. However,
If the trend reverses, ETH could test the first support level at $3,158. If it breaks below this level, the ETH price could decline further to $3,014. If this level also fails to hold, ETH could fall as low as $2,723, representing a potential 18.4% correction. Conversely, if the uptrend regains strength, ETH could test the resistance at $3,545.
Breaking past this level could pave the way for a move to $3,745, and if momentum remains strong, the Ethereum price could target $4,106. This would mark a significant milestone, pushing ETH above $4,000 for the first time since mid-December 2024.
Join the BeInCrypto community on Telegram to stay updated on the latest analysis and news about the financial market in general and cryptocurrencies in particular.
All information on our website is published in good faith and for general information purposes only.Any action the reader takes upon the information found on our website is strictly at their own risk.
