ETH’s move above the $3,000 milestone has re-turned the sentiment around the second-largest cryptocurrency to the bullish side. The rally has broken above the 100-day exponential moving average (EMA), which suggests that bullish sentiment may be returning to the market.
However, despite the price increase, the volume has clearly declined. The decline in trader interest sends a warning that the current uptrend may not have the momentum to break through important resistance levels going forward. One of the levels to watch is the 50-DMA, which has previously acted as a barrier to price gains.
Zooming in on the daily chart, we see that Ethereum recently diverged from the ascending channel, suggesting a possible shift in trend. While such breakouts tend to lead to more volatile moves, the question remains whether this is just a temporary detour or the beginning of a new path.
Support has formed around the $2,900 region, where the 100-DMA is located, acting as a springboard for the recent rally. On the other hand, there is clear resistance at the 50-DMA, hovering around the $3,200 mark. This moving average could become the next battleground between the bears and bulls.
Looking ahead, if Ethereum can sustain current levels and potentially break above the 50-day moving average, it could pave the way for a new bullish phase. The key test will be whether it can ignite enough volume and buyer interest to break above these looming resistance points.
