- Ethereum is aiming to break a key resistance level, targeting a price of $3,200.
- Bullish signals, such as the CMF and DMI, indicate rising buying interest and potential for upward movement.
- ETH’s price can drop to around $2,775 if it fails to break the resistance.
Ethereum (ETH) is making a concerted effort to overcome a key resistance level, aiming for a price target of $3,200. Currently, ETH is valued at $3,140 after a significant 10% increase over the past two days.
The main focus is on ETH’s attempt to break through the upper boundary of its descending channel, a critical resistance point. This effort is bolstered by bullish signals on the daily chart. One key indicator, the Chaikin Money Flow (CMF), has moved above the zero line, indicating an inflow of new liquidity and a reduction in selling pressure. This shift suggests that buying interest is on the rise.
The Directional Movement Index (DMI) also presents a positive outlook. On May 17, the positive directional index crossed above the negative index, signaling a bullish trend. Additionally, the Elder-Ray Index indicates a stronger presence of buyers in the market, further supporting the potential for upward movement.
Trading volume has seen a substantial increase, with data showing a 40% rise in ETH’s daily trading volume over the past week. This increase in trading activity underscores growing investor interest and suggests that the current upward trend could be sustained if this momentum continues.
However, the market’s volatility remains a significant factor. If ETH is unable to break through the upper boundary of its descending channel, there is a risk that the price could fall back to around $2,775. If ETH is unable to break through the upper boundary of its descending channel, there is a risk that the price could fall back to around $2,775.
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