Crypto market cap surges to $2.08T, with Bitcoin reclaiming $61,000 for a short period of time.
Ethereum price rose to $2,600.
Technical analysis and ETF flows present mixed signals for ETH’s short-term outlook.
Ethereum finds itself at a critical juncture as the broader cryptocurrency market experiences a resurgence, with the total market capitalization dropping to $2.08 trillion from $2.14 trillion.
This drop has pulled Bitcoin back above and below the $58,000 level from the $61,000 mark. Ethereum has followed suit with a gain, accompanied by a drop shortly after.
The second-largest cryptocurrency by market cap has been trading within a bullish expanding triangle pattern since May, a formation that typically signals weak price action.
However, Ethereum’s recent price jump has coincided with the formation of an ascending triangle pattern, suggesting mounting buying pressure. This technical setup, coupled with a successful retest of crucial support trendlines, hints at the potential for a bullish reversal.
Ethereum technical indicator show mixed signal
Technical indicators paint a complex picture of Ethereum’s near-term prospects. The 50/200-day Exponential Moving Average (EMA) has recorded a Death Cross on the daily timeframe, traditionally interpreted as a bearish signal.
Conversely, the Relative Strength Index (RSI) displays a consistent uptrend, with its average trendline exhibiting bullish characteristics. This divergence between indicators underscores the uncertainty surrounding Ethereum’s immediate price action.
Ethereum spot ETF flows offer additional insight into market sentiment. Grayscale’s “ETH” product led inflows with $4.9 million over the past 24 hours, followed by Bitwise’s “ETHW” at $1.9 million.
However, Grayscale’s “ETHE” continues to experience outflows, recording a $20.3 million decrease for the fifth consecutive day. This mixed picture of ETF flows reflects the broader market’s ambivalence towards Ethereum’s short-term prospects.
Looking ahead, Ethereum’s price trajectory hinges on its ability to overcome key resistance levels. A continued bullish trend could see ETH testing the $2,870 resistance this month.
