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 ahead. Are there signs for this?
Ethereum Moves Toward $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 the bulls are supporting this uptrend with a series of signs detected on the daily chart. Altcoin Ethereum (ETH) is preparing to break above its descending channel’s upper line, 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 last seven days. The total value of the global crypto market increased by 9% during this period.
Can ETH Succeed?
A descending channel forms when an asset’s price continues to make lower highs and lower lows, 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 been 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 rose above the zero line and is in an uptrend at the time of writing. This indicator measures the money flow into and out of 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 due to the asset’s price reaching new highs because of increased 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 also 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 dominates the market.
ETH bulls could succeed if they break above the descending channel’s upper line. 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.
