Like many other cryptocurrencies, Ethereum (ETH) has seen a noticeable decline in its value over the past few days.
According to CoinGecko data, the second largest cryptocurrency by market capitalization is currently trading at around $3,500, representing a 9% decline over the past week.
Expert opinions on Ethereum price performance:
Despite the recent decline, there is optimism among some analysts that Ethereum may see a major recovery in the near future, with expectations that it will reach new highs in the coming months.
For example, cryptocurrency analysts known as “X Wolf” and “Jelle” offered bullish views on Ethereum’s trajectory.
The analyst named “X Wolf” indicates that Ethereum has begun an upward trajectory since the beginning of 2024, basing his forecast on a chart showing increasing volatility that is expected to eventually lead to a new high exceeding $5,000.
For his part, “Jelle” believes that Ethereum has successfully retested the 50-day moving average, which reinforces his belief that the currency may reach new peaks once it exceeds the $3,700 barrier.
The 50-day Exponential Moving Average (EMA) is an essential tool in technical analysis, as it helps identify recent trends, with greater emphasis on the latest data than the Simple Moving Average (SMA).
This indicator represents insight into potential buy and sell levels, which is crucial for predicting future price movements.
Besides technical analysis, several key indicators highlight positive signs indicating a possible rebound in Ethereum prices soon.
One such indicator is the net flow into Ethereum wallets which has been negative over the past four days, indicating a shift of coins from centralized trading platforms towards self-storage wallets, which is usually a bullish sign as it reduces spot selling pressure.
On the other hand, Ethereum's Relative Strength Index (RSI) fell to its lowest level in several months, recording 20.7 on June 11, and is currently trading at 36.
This indicator has not exceeded the 70 mark since May 23.
As a volatility measure of momentum, RSI measures the speed and frequency of price changes, and identifies overbought or oversold conditions in a market.
Values above 70 indicate the possibility of a pullback, while values below 30 indicate possible buying opportunities.
The bottom line is that, in light of technical analysis and leading indicators, it appears that Ethereum may be at the beginning of a new upward trajectory.
With its value expected to rise to new highs, investors remain optimistic that momentum will return to the digital currency in the near future.
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