Ethereum’s recent price action shows it is attempting a recovery after a significant downturn. Over the past few weeks, Ethereum has faced considerable selling pressure, leading to a substantial decline. However, the cryptocurrency is now showing signs of recovery as it hovers around $2,740.
The ETH/USD chart highlights a clear downtrend for Ethereum, with a series of lower highs and lower lows observed since early May. The price dipped sharply, reaching a low point near $2,131. Despite this, Ethereum has recently bounced back, though the recovery seems cautious. Crypto analyst Crypto Tony has commented on the situation, noting that Ethereum needs to reclaim the $2,850 level to confirm a bullish reversal.
The TradingView chart provides additional insights with technical indicators such as the RSI and MACD. The RSI is currently at 42.92, indicating that Ethereum is approaching oversold territory, which could suggest a potential buying opportunity. Meanwhile, the MACD is showing a negative trend, with the MACD line positioned below the signal line, highlighting bearish momentum. However, there is a possibility of a bullish crossover if the current trend continues.
The $2,850 resistance level is crucial as it represents a significant hurdle that Ethereum must overcome to regain its upward momentum. If Ethereum breaks past this level, it could signal the beginning of a new bullish phase. However, failure to do so may result in further consolidation or even a potential decline.
Ethereum Records Highest Year-to-Date Inflows Since 2021 Amid Market RecoveryAt press time, Ethereum was trading at $2,733.65, reflecting a 3.38% increase in the last 24 hours. Ethereum’s market cap has also risen to $328.79 billion, though the 24-hour trading volume has decreased by 30.67%, standing at $15.24 billion. This data further underscores the cautious optimism in the market as Ethereum edges closer to the key resistance level of $2,850.
Ethereum’s performance in the coming days will be critical in determining its short-term trajectory. Traders and investors should closely monitor the $2,850 level, as it could provide a clear signal for the next direction of Ethereum’s price movement.
