Ethereum (ETH) continues to show bullish momentum, currently priced at $2,759.09 – a gain of 0.99% over the past 24 hours. The cryptocurrency’s market capitalization rises to $332.64 billion, and its 24-hour volume rises 7.89% to $15.28 billion.
These moves indicate increased buying interest as the market looks forward to resistance on February 22 and the possibility of a breakout of USD$2,800.
Current Ethereum Price Trend
The recent price move shows volatility along with an uptrend, characterized by higher highs and higher lows – a sign of a sustained uptrend.
Increased trading volume supports the potential for further gains, and if Ethereum remains above USD$2,750, it could move towards key resistance levels.
Ethereum finds key support at $2,730, as multiple rebounds point to strong buying pressure. Below this level, $2,700 acts as a critical psychological level, while $2,660 represents the lowest point in the current timeframe.
Ethereum is approaching $2,780 – a level at which the price has faced rejection before. If the price breaks through this barrier, the next critical resistance is at $2,800, a psychological level that could signal further gains. If Ethereum succeeds in breaching this level, the $2,850 level becomes the next major target, and marks the upper end of the current price range.
Technical indicators of Ethereum point to a possible shift in momentum. The Relative Strength Index (RSI) currently stands at 48.19, indicating neutrality. Although it remains below the 50 threshold, signs of recovery suggest that buying pressure may increase. A move above 50 would boost the bullish probability.
Ethereum shows bullish momentum with strong liquidity flow
As of now, the buy-sell ratio of buyers – a key indicator of market sentiment – reflects a bullish outlook with a reading of 1.13, suggesting that buyers are actively acquiring Ethereum. This level represents the highest reading of the year, demonstrating buyers’ dominance over sellers.
Moreover, this rise in purchasing pressure is evident from the funding ratio, which currently stands at 0.0050%. A positive funding ratio indicates that traders are more inclined to buy on Ethereum, demonstrating increased confidence in the asset’s potential for growth.
Is a significant rise in Ethereum expected?
Analysis of Ethereum price charts reveals a critical juncture as Ethereum tries to break above the upper resistance level of its symmetrical channel. This technical composition is necessary because it can indicate accumulation and the possibility of an increase after penetration.
If ETH succeeds in breaching this key resistance, the next target will be $2798.34, which is an important level, and if exceeded, could pave the way for further growth towards $3440 – a possible increase of 23.06%.
Recent data from Artemis reveals significant liquidity flows to Ethereum, with a total net inflow of $100.7 million over the past week. This figure indicates a steady flow of capital into Ethereum, reinforcing bullish expectations across the crypto ecosystem.
Prevailing market sentiment remains upbeat, with investors expecting this increased liquidity to facilitate a strong rise in ETH prices in the near future.
The Moving Average Convergence and Divergence (MACD) indicator presents a potential bullish crossover. The MACD line is at 32.90, while the signal line remains at -97.18.
Ethereum derivatives data reflects market activity
Coinglass market sentiment remains upbeat, with Ethereum derivatives data highlighting increased trading activity. Derivatives volume increased 10.53% to $25.58 billion, while open interest rose 4.11% to $25.66 billion.
Bitcoin in recession while Ethereum flashes buy signal
Bitcoin has been in recession lately and traders are concerned with the consolidation of the market. However, renowned analyst Michael van de Bopp argues that Bitcoin’s lackluster price movement could benefit altcoins, with Ethereum being a major competitor.
The expert predicts that Bitcoin may break the $100,000 barrier, while Ethereum may exceed $3,000. Historically, this sideways trend in prices in Bitcoin has led to significant spikes in altcoins.
At the same time, another analyst warned against short selling in a low-volatility environment, pointing to Bollinger bandwidth extremes. Technical analysis shows that markets with extreme volatility declines have rarely rewarded short sellers before. This supports patient investors who are waiting for a breakout.
By contrast, Ethereum showed a buy signal on the TD Sequential indicator, which often indicates a trend reversal. This technical indicator, widely used among traders, suggests that Ethereum is ready for bullish momentum in the coming sessions.
Currently, the coin is approaching key support levels, making it a good entry point for traders who expect a rise in the value of altcoins.
Economic factors behind Bitcoin’s decline
Looking at the bigger picture, market watchers attribute the decline to economic factors such as central banks restarting quantitative easing, which could cause this decline.
Former BitMEX CEO Arthur Hayes has previously suggested that liquidity issues faced by the US Treasury’s public account are a major factor in the potential market decline. This is especially true in the first quarter and may hurt investor sentiment.
Besides, there is turmoil due to the lack of progress in the Bitcoin Strategic Reserve Initiative under the new Trump administration, which has also weakened investor sentiment.
