Ethereum

bullish

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Ethereum [ETH] is trading below the $2.8k resistance zone, with a possible breakout toward $3,350.</li>
 <li>Lackluster demand and negative exchange netflows could potentially hinder this breakout.</li>
</ul>
<p>Despite the slow upward movement, Ethereum [ETH] has been trading under the $2.8k resistance zone since August. This recent move lacks explosive momentum but has been gradually building since September.</p>
<h2 id="accumulation-in-progress">Accumulation in Progress</h2>
<p>Negative exchange netflows indicate an ongoing accumulation. However, it remains uncertain whether this would be sufficient to propel prices beyond the three-month highs.</p>
<h2 id="ascending-triangle-pattern">Ascending Triangle Pattern</h2>
<p>Ethereum has been creating a pattern of higher lows since September, but has struggled to surpass the $2.8k resistance zone. This has resulted in an ascending triangle pattern. The OBV has slowly increased over the past two months, albeit still below the levels seen in June and July.</p>
<p>The tepid demand could potentially diminish the size of the breakout. If the daily session closes above $2.8k, it could ideally reach the $3,350 level.</p>
<p>However, this breakout may not be immediate and could take a few days to happen. A dip toward $2.5k is also a possibility. The RSI is bullish, but did not indicate a clear trend in October. The DMI corroborates this, with the ADX (yellow) falling below 20 at the time of writing.</p>
<h2 id="volume-concerns-on-lower-timeframes">Volume Concerns on Lower Timeframes</h2>
<p>The Open Interest and the price have shown a strong upward trend in the past three days. The funding rate has also surged in the past 24 hours. These signals indicate a firm bullish sentiment in the lower timeframes.</p>
<p>Despite ETH being up by 9.4% since October 26th, the spot CVD failed to increase. This lack of spot demand, along with the weakness shown by the OBV, raises questions about the strength of the bulls.</p>
<p>The information provided here does not constitute financial, investment, trading, or other types of advice and is solely for informational purposes.</p>

Ethereum’s Tussle with $2.8K Barrier: Can Bullish Forces Triumph?

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CoinEagle.com

Other articles published on Oct 31, 2024

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