Ethereum edges above $3,000, crossing the 100 EMA, but despite the breakthrough, there is a possibility of a bearish reversal seen on the ETH/USD price chart. The climb, while positive, shows signs that it might not have the steam to break through the 26 EMA convincingly. This short-term moving average is proving to be a tough resistance for the second-biggest cryptocurrency, but it should not.
The trading volume for Ethereum is unfortunately on the decline. The downtrend in volume could be a red flag, suggesting that the recent price increase might be running out of fuel. Volume often confirms trends on the market, and the absence of it during the uptrend is an issue. A price increase on low volume can indicate a lack of commitment from buyers and, sometimes, that the current price action may not be sustainable.
If it can gather the strength to push past the 26 EMA resistance, which is around $3,236, we could see a more definitive move toward higher levels. However, if it fails to, there is a risk of a slip back to lower prices. The next significant level of support lies around $2,890, which could serve as a landing spot for the price.
The immediate future of Ethereum is uncertain. There’s a need for increased trading volume, as it would support the current rally. Without it, the recent break above $3,000 might not lead to the performance that many hope for.
While Ethereum has made some gains, the current trading volume raises questions about the longevity of its run above $3,000. Without a convincing surge in the trading volume and market liquidity, the possibility of a rally continuation is almost nonexistent.
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