Ethereum (ETH) shows signs of strength and attention after a sharp 49% meeting in the past week. Market capitalization is above $300 billion, and while EMA indicators remain bullish, momentum indicators are beginning to cool down.
ADX fell from 61 to 47.99, while RSI fell from 86 to 63, suggesting that the upward trend may be losing steam. However, buyers are still active and if ETH is above the main resistance, the next leg could be over $3,000.
ETH DMI signals cooling rally and bear pressure rise
Ethereum’s DMI indicator shows ADX has dropped from 61 to 47.99, indicating it reduces the strength of the trend.
ADX (mean directional index) measures the intensity of the trend, with values above 25 showing a strong trend, suggesting a very strong momentum above 40.
The decline in ADX could indicate that the current trend is losing steam, even though analysts have recently pointed out that Ethereum could overtake Bitcoin.
+DI line has dropped sharply from 47.96 to 27.2, indicating a significant cooling of bullish momentum.
Meanwhile, the -DI line has risen from 3.39 to 13.97, suggesting that bear pressure is beginning to rise.
This trend still supports the Bulls, but the gap between +DI and -DI will narrow and if this continues, Ethereum could face short-term pullbacks or enter the integration phase. However, at the last time the +DI rose and the -DI fell, suggesting that ETH buyers are trying to maintain their control.
Ethereum RSI cools from over-acquired zones but remains bullish
Ethereum’s RSI fell from a high of 86 to 63 three days ago, after exceeding the excess threshold of 70 three days ago.
Interestingly, despite recent DIP, the RSI has bounced back from the 54 just hours ago, suggesting new purchase rights in the short term.
RSI (Relative Strength Index) is a momentum index ranging from 0 to 100. Measurements above 70 usually indicate excessive conditions and potential pullback. Values between 50 and 70 generally refer to moderate bullish momentum.
At 63, Ethereum’s RSI shows that the assets have cooled down from recent excess levels, but still remain fundamentally bullish. This means the market has reset after a strong gathering, and there is room for another leg to lift if the purchase continues.
Ethereum’s eyes are $3,000 after a 43% weekly surge, but important resistance is retained
Ethereum prices have increased 43.5% over the past seven days, with market capitalization exceeding $300 billion. Its EMA line continues to show strong bullish construction, strengthening the current uptrend.
However, ETH recently tested a $2,617 resistance and was unable to break through.
A successful breakout that level could pave the way to $2,855 or even $3,000 for the first time since early February, allowing for an extension of $3,442 as momentum accelerates.
On the downside, $2,320 in support is important. If ETH tests and loses that level, the price could slide to $1,938. A stronger bearish move could push it down to another $1,736.
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