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Ethereum (ETH)Price Analysis

ETH Bulls Dominate Market, Indicators Caution of a Probable Pullback

Ethereum (ETH) buyers have been in command during the past day, moving the price between a high of $1,716.49 and a low of $1,686.70. Bullish confidence had won at the time of writing, as ETH had climbed 0.70% to $1,699.43.

The market capitalization climbed by 0.66% to $207,966,291,753 as traders rushed into the market in expectation of the price boom continuing and resulting in profit chances. Nevertheless, the upward momentum may only last for a short time, as 24-hour trading volume fell by 3.70% to $7,385,979,119.

ETH/USD 24-hour price chart (source: CoinMarketCap)ETH/USD 24-hour price chart (source: CoinMarketCap)

The Aroon up reading of 35.71% crosses below the Aroon down reading of 50.00%, indicating that the bullish momentum in ETH is fading and a possible negative trend is on the horizon. As a result of this shift, traders should be on the lookout for any potential short-term drops in ETH prices and be ready to respond quickly if necessary. When this happens, traders should close long positions and consider taking short ones instead.

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The Know Sure Thing (KST) indicator currently has a value of 38.7860, and it is moving in the direction of trending below the signal line. This contributes to the reinforcement of the negative perspective, as it indicates declining bullish momentum. This movement suggests that buying pressure is starting to wane and that the bears are preparing to take over, so traders should be cautious about opening long positions.

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The Money Flow Index (MFI) reading of 54.98 suggests that the market is still in excellent health since values over 80 indicate overbought markets, while readings below 20 indicate an oversold market. This level suggests that traders should exercise caution while remaining aware of the opportunities that may present themselves as a result of taking short positions in this market.

ETH/USD 4-hour price chart (source: TradingView)ETH/USD 4-hour price chart (source: TradingView)

The Aroon up reading of 64.29% trends above the Aroon down reading of 42.86% in the 24-hour price chart. This indicates that although the short-term outlook is gloomy, there is a substantial likelihood of an uptrend in the medium term. This pattern indicates that purchasing activity is picking up, which suggests that investors are anticipating future gains and trying to profit from them.

The KST has a reading of 45.3011, which indicates that it is continuing its downward trend below its signal line. This indicates that bears still have a chance to influence the market, even if buyers are looking to acquire bargains in the hopes of making future profits. This level indicates that there is still a strong probability of a medium-term upturn in price, despite the fact that the short-term trend may continue to be negative.

Although the MFI is at 65.88, prices remain in the “neutral zone,” which means that buyers and sellers have roughly equal power and that prices may soon climb as buyers try to profit on any bad market trend. With a persistently bearish trend, investors should exercise caution when making purchases and may benefit from waiting for a break in the signal line before entering the market.

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ETH/USD 24-hour price chart (source: TradingView)ETH/USD 24-hour price chart (source: TradingView)

Even though bears may be in charge in the short term, technical indicators point to a positive long-term picture for the ETH market.


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Curtis Dye

Curtis is a cryptocurrency news and analytics author with a focus on DeFi, BLockchain, CeFi, NFTs etc. He has publication skills such as SEO optimization, Wordpress, Surfer tools and aids his viewers with insights on the volatile crypto industry.

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