Analysis

ETH cracks $3,000, but there are worrying signs

After breaking out of the key $3,000 resistance level at the end of the week, ETH is currently moving higher on positive market sentiment, led by Bitcoin, which is trading around $44,000 at press time.

Major support levels: $3,000, $2,805
Key resistance levels: $3,400, $3,750

ETH’s bullish move stalled as it surpassed $3,000 without strong conviction to move higher. However, despite buyers’ hesitation, the cryptocurrency has continued to climb to $3,235 today. $3,000 has developed as support and the next key resistance is $3,400.

ETH/USDT daily chart | Source: TradingView

Technical indicators

Trading Volume: Volume decreases as price increases. Therefore, if the overall market turns bearish or enters a pullback, ETH looks weak and could dip back below $3,000.

RSI: The daily RSI has moved to 60, which is on the upside. Buyers need to hold this level or ETH will very likely face massive selling pressure.

MACD: As the daily MACD rises, its histogram shows that the bullish momentum has weakened. If the histogram produces a lower peak, this is best taken as a warning.

ETH/USDT daily chart | Source: TradingView

Perspectives

The current trend of ETH is bullish. However, ETH is looking weak as volume is declining and losing momentum. Because of this, the price is unlikely to break the $3,400 resistance.

Short term prediction

Even if ETH breaks above $3,000, this recent price action could be quickly reversed if selling pressure mounts. Decreasing dynamics and low volume are a problem. However, the market is currently favoring the bulls and ETH could benefit. If the price continues to rise from here, the next key resistance will be found at $3,400.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.