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Ethereum price is approaching $3,200. It has made a significant move with a 10% increase in the last 48 hours. The next question is whether a bull market is on the horizon. Are there any signs of this?
Ethereum Heads Towards $3,200 Resistance Level
ETH is moving towards breaking a long-term resistance level. If successful, the leading altcoin will rise to the $3,200 price level. Currently, ETH is trying to break above the resistance, and bulls are supporting this uptrend with a series of signals identified on the daily chart. Altcoin Ethereum (ETH) is preparing to break above the upper line of its descending channel, indicating a decrease in selling pressure.
Currently valued at $3,140, the coin’s value has increased by nearly 10% in the past week. This growth reflects the overall rise in the crypto market over the past seven days. The total value of the global crypto market increased by 9% during this period.
Can ETH Succeed?
When an asset’s price continues to make lower highs and lower lows, a descending channel forms, indicating a broad downtrend. ETH started trending within this channel on March 12, causing its price to drop by 20% since then.
As the cryptocurrency moves towards the upper line of the channel, which has formed a resistance level since March, the market has witnessed an increase in new liquidity inflow. Confirming this is ETH’s Chaikin Money Flow, which recently moved above the zero line and is in an uptrend at the time of writing. This indicator measures the money flow entering and exiting the coin market.
When an asset’s CMF rises in this manner, it indicates more buying pressure than selling pressure in the market. This is usually because the asset’s price is making new highs due to an increase in trading volume. According to Santiment’s data, ETH’s daily trading volume increased by 40% in the past seven days.
What Are the Other Metrics?
ETH’s positive directional index (green) crossed above the negative index (red) on May 17. When the Directional Movement Index (DMI) shows such readings, it indicates a bullish market.
Additionally, the cryptocurrency’s Elder-Ray Index was positive at the time of writing. This indicator measures the relationship between the strength of buyers and sellers in the market. When it returns a positive value, it means bull strength is dominating the market.
ETH bulls could succeed if they break above the upper line of the descending channel. In this case, the next price target will be above $3,200. However, if selling pressure increases and a downtrend starts, the price is expected to drop to $2,775.
