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Ethereum: Can Momentum Last? Watch These Levels Short-Term
Ethereum, the second-largest cryptocurrency, has been on a rollercoaster recently, dropping below the psychologically crucial $3,000 mark only to recover. Its price behavior has been a perplexing combination of optimistic and negative signs.
New investors, short-term spikes (bullish)
Ethereum bulls saw promise in a recent increase of new addresses. Glassnode statistics shows that fresh Ethereum addresses have soared beyond 160,000, compared to January's lows of under 100,000.
Technical indications on the 4-hour chart suggest a short-term uptrend. NewsBTC analysts say wider Bollinger Bands indicate higher volatility, which might lead to a price jump. The market may be trying to attract buyers before the slump continues.
Market Sentiment and Technical Trends Look Bearish
However, the joy may not last. Despite the short price rise, Santiment data suggests that investor caution persists after the much-anticipated Bitcoin halving event in April failed to generate a substantial market boom.
Ethereum's daily chart remains unclear, fueling bearishness. Technical experts see prolonged price structure breakdowns to the downside, suggesting a downtrend continuation. The market's gloomy mood is reinforced by the RSI's low 40.
Neutral View on Chart Patterns and Breakout Potential
Despite contradicting indications, veteran trader Peter Brandt provided a neutral view. Brandt found two technical patterns—a flag and a channel—on Ethereum's “intriguing” price chart.
A flag indicates a trend continuance after a short halt, whereas a channel enables price movement within a range. The pattern's uncertainty predicts a breakthrough in either direction, leaving Ethereum's future unknown.
Ethereum's future is unclear due to contradictory technical signs and a bearish market. Short-term price surges are possible, but the long-term trend is negative.
Ethereum must navigate these tumultuous seas and define a route in the next weeks or months.
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