Ethereum failed to regain momentum after a 15.8% drop earlier this month. The alternative king continues to struggle with weak recovery signals and is trading sideways as investors cautiously adjust their positions.
Although selling pressure has eased, the recovery of Ethereum's price remains limited due to broader market headwinds.
Dwindling selling from Ethereum investors
Data from the net change in exchange positions indicates a gradual decline in outflows from Ethereum over the past few days. This trend suggests that investors are slowing down their selling activity, which may favor a potential price stabilization.
A continuous reduction in outflows from exchanges typically reflects a cooling of bearish sentiment among traders. However, the current phase suggests a pause rather than a reversal. The decline in selling volume has not yet translated into notable accumulation, which is a prerequisite for sustainable recovery.
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The Relative Strength Index (RSI) paints a cautious picture of Ethereum's momentum. The indicator remains below the neutral mark of 50, indicating ongoing bearish pressure despite a slight rebound from oversold conditions. This suggests that sellers are still in control, and ETH's recovery path remains uncertain.
For Ethereum to regain upward momentum, the Relative Strength Index must rise above 50 and maintain higher readings. This step would indicate a renewal of investor confidence and stronger buying activity, which could contribute to driving a price recovery.
The price of ETH may end up consolidating
Ethereum is trading at $3,512, holding slightly above the support level of $3,489 after recent volatility. Despite minor improvements, the king of altcoins remains below key resistance levels, struggling to fully recover from this month's decline of 15.8%.
The price of ETH must break the resistance at $3,607 to confirm a trend change. Current indicators suggest it may continue to consolidate within the range of $3,489 to $3,287 while momentum remains neutral.
If market conditions improve next week, Ethereum could bounce back and test $3,607 again. A successful breakout could push the price towards $3,802. This would contribute to a signal of renewed bullish strength and invalidate the current negative outlook.
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