ETH has seen some large beneficial properties recently. In truth, the price has risen quicker than Bitcoin.

For instance, think about the final 17 days. With the exception of August 3, ETH closes a inexperienced candle every single day. Given ETH’s 77 p.c rally, many count on the price to solely rise sooner or later.

However, in keeping with some indicators, this might not be the case.

ETH might not be bullish in the long term

Despite the above-mentioned acquire of 77.3%, ETH can not submit any additional beneficial properties given the Relative Strength Index (RSI). The RSI signifies whether or not a cryptocurrency is in an overbought or oversold state and the likelihood of a trend reversal.

At the time of writing, the ETH’s RSI has risen into the overbought zone.

The indicator was on the identical excessive in May when the market final recovered. Shortly afterwards, the ETH made important corrections. While there is no foundation for the second largest altcoin to fall as a lot because it did then, it definitely doesn’t sign a $ 300 rally.

RSI ETH within the overbought zone | Source: TradingView

Even if ETH manages to keep up its present transfer, it may solely keep there for a few extra days or much less. The probability of relapse is very excessive. This may break the rally and ETH may enter a consolidation section or a downward correction within the brief time period.

Although the price broke one of the final resistance ranges on the month-to-month chart ($ 2,777), that stage held the price under $ 2,700 for 4 months. At the identical time, ETH has but to substantiate a breakout, as there are nonetheless a few weeks away earlier than the tip of the month.

ETH breaks month-to-month resistance | Source: TradingView

What do the indications say?

ETH’s on-chain indicators additionally appear to assist the prediction talked about above. Overall, the on-chain knowledge exhibits a bearish sign. Not solely that, participation has additionally decreased considerably, because the quantity of lively addresses is nonetheless low. In truth, they’re at month-to-month lows.

Metric sign within the chain belong ETH | Source: Intotheblock

In addition, the ratio of community worth to transaction (NVT) on the 30-day Simple Moving Average (SMA) is at the moment at an annual excessive. This is one other signal that altcoins may right quickly because the indicator implies a trend reversal.

ETH NVT price at annual excessive | Source: Santiment

There is nonetheless some hope for this largest altcoin, nevertheless. In the derivatives market, each open curiosity and ETH futures volumes are trying good.

However, if the trend is reversed, ETH may right considerably. Investors ought to intently monitor the market earlier than making any selections.

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