ETH Bull Run Hope Rekindled As Bulls Test $3,000 Resistance (Ethereum Price Analysis)

The price of Ethereum has been on a gradual decline since mid-March and has yet to show any decisive signs of recovery.

However, today’s price action is critical as it may finally regain some bullish momentum in the market.

Technical Analysis

By TradingRage

The daily chart

Looking at the daily time frame, Ethereum price has been trending lower within a large descending channel and has yet to break it to either side.

Meanwhile, the cryptocurrency is currently testing the midline of the range and the key $3,000 level. With the 200-day moving average sitting near the $2,800 support zone, it looks more likely that the market will rally towards the $3,600 resistance zone in the coming weeks.

Source: TradingView The 4-hour chart

The 4-hour chart paints a clearer picture. The price of Ethereum has risen rapidly since yesterday, but is currently holding on to the midline of the channel and the $3,000 resistance level.

Meanwhile, the RSI is showing values ​​above 50% at the moment, indicating that the momentum is in favor of buyers. Therefore, a break above the midline of the channel could lead to a quick rally towards the $3,600 resistance zone.

Source: TradingView Sentiment Analysis

By TradingRage

Exchange reserve

Ethereum price has followed a downward trajectory since its rejection from the $4,000 level. Meanwhile, analyzing the dynamics of market supply and demand can provide important information.

This chart presents the Exchange Reserve metric and its 30-day excess move for Ethereum. Rising values ​​are usually associated with increased selling pressure, as they usually indicate that deposits are being exchanged by holders who want to sell their coins.

As the chart shows, the foreign exchange reserve metric has experienced a general decline over the past few months. However, the metric has recently broken above its moving average, a sign that unusual selling has previously materialized during price declines or reversals. So investors should be hopeful that supply will be met by sufficient demand, or things could get ugly soon.

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