Ethereum (ETH) has shown impressive strength over the last 24 hours, with prices rising 9%. This recent upward momentum has been closely scrutinized by analysts, especially as key technology indicators suggest that cryptocurrencies are at a critical point.
A clear bullish trend appears to be constructed from a significant increase in its relative strength index (RSI) to the reinforced directional motion index (DMI). However, ETH is currently facing a critical level of resistance that determines whether this rally can be maintained or whether the amendment is on the horizon.
As trend strengths build, is ETH preparing for a breakout?
Ethereum’s Directional Motion Index (DMI) reveals a significant surge in trend intensity, with the mean directional index (ADX) rising from 11.58 to 24.77 just a day ago.
ADX measures the intensity of trends regardless of direction, with values below 20 usually referring to weak or non-trend markets, while values above 25 referring to strong trends.
Ethereum is now approaching its critical threshold, with momentum being built, suggesting that a more clear directional movement is occurring. Analysts have recently highlighted four reasons why Ethereum may be on breakout crisis.
Supporting this, +DI (positive directional indicator) jumped from 18.17 to 44.07, indicating a strong bullish push, and -DI (negative directional indicator) fell from 23.92 to 12, weakening the bearish pressure.
This widening gap between +DI and -DI means that buyers are gaining critical control.
If this trend continues and ADX exceeds 25, Ethereum can enter a stronger upward phase by increasing bullish convictions.
Ethereum’s RSI hits a month’s height. Is the price correction approaching?
Ethereum’s relative strength index (RSI) has increased significantly, rising from 42.66 yesterday to 76.82.
This was the first time that ETH RSI has crossed the 70 threshold in nearly a month, with the last instance occurring on May 11th.
Such a rapid change in RSI suggests a marked change in Ethereum’s market momentum, indicating a strong inflow of purchasing pressure over the past 24 hours.
The relative strength index (RSI) is a momentum oscillator. Technical analysts use it to measure the speed and change in price movement. Moves between zero and 100. Traders believe that if the RSI exceeds 70, their assets have been “over-acquired.” This suggests that its prices could be sustainedly higher, indicating future revisions.
Conversely, RSIs with less than 30 points are subject to “overselling”. This means that assets may be undervalued and ready for upward rebound. Therefore, ETH’s current RSI at 76.82 is straightening it into the territory that has over-acquired it.
This high reading often indicates that assets are experiencing rapid price increases and that their right to purchase may be at extreme levels, potentially leading to pullbacks or integrations for a near-term period.
Will Ethereum get back $3,000?
Ethereum (ETH) is approaching critical resistance at $2,790. Breaking this could drive a strong upward trend, and ETH could test $3,442. That exponential moving average (EMA) line supports this.
They show that bullish trends are being built. EMAS prioritizes recent pricing data. Their bullish setup suggests a short-term momentum increase. This provides a positive technical outlook.
Ethereum can see a notable drop if it is tested and lost with $2,462 in support. It could fall to $2,326. A strong downtrend can further reduce ETH. It could reach $1,938, falling below $2,000.
It will be my first time since early May, under $2,000. Such a decline would indicate a major shift from bullish to bearish emotions.
Disclaimer
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