According to CoinDesk, Ether's ongoing uptrend is as strong as the one observed in May 2021, as per a popular technical study. The Relative Strength Index (RSI) also suggests a similar trend, with immediate resistance lined up at $4,090. The Ether market is currently experiencing the strongest upward momentum in three years, a stark contrast to the market phrase 'don't catch the falling knife.'
A week ago, even before the speculation around the spot ETH ETF gained momentum, it was reported that Ether's price could bounce off a key bullish trendline support. Since then, it has surged by at least 18% to $3,800, marking a larger-than-expected increase. The momentum indicator of the second-largest cryptocurrency, which measures the rate of change in prices over 10 days, has jumped to $880, the highest since May 2021, as per TradingView.
The bullish trend is strong, and any bears looking to sell could easily be overrun. This also implies that trying to pick a top right now is as risky as attempting to pick a bottom when an asset is experiencing a strong decline. Traders use the momentum indicator to confirm market trends and spot divergences. A bearish divergence occurs when the indicator decouples from rising prices, indicating bullish exhaustion and potential correction or drop.
At the time of writing, Ether's daily price chart shows the momentum indicator rising along with the price, confirming the uptrend. The 14-day RSI has crossed above 70, indicating a strengthening bullish momentum. The 14-week RSI is fast approaching the 70 level, a threshold that has marked previous parabolic bull runs.
The immediate resistance is seen at $4,090, the high hit in April, followed by the record price of $4,692 reached during the 2021 bull run. Options traders from the decentralized marketplace Lyra are positioned for a rally to $5,000 by the end of the second quarter.