Leading altcoin ETH has resisted the overall market decline over the past 24 hours, showing a moderate increase of about 1%. At the time of publication, the token is trading at $1,842.
This is happening against the backdrop of a rise in the key momentum indicator - the ratio of purchases to sales - to the highest level in the last 30 days, indicating a recovery of bullish pressure in the futures market for this asset.
Traders are observing potential growth for ETH amid buying pressure and developments.
According to CryptoQuant, the ratio of purchases to sales for ETH currently stands at 1.08, the highest value since early April. This indicator measures the ratio between buying and selling volumes in the ETH futures market. Values above 1 indicate that more traders are actively buying ETH contracts than selling them, while values below 1 indicate prevailing selling pressure.
With a value of 1.08, the ratio of purchases to sales for ETH clearly leans in favor of buyers, reflecting growing confidence among traders that prices may continue to rise.
Furthermore, the relative strength index (RSI) of the altcoin continues to rise, supporting this bullish narrative. At the time of publication, it is at 58.39 and continues to rise. The RSI indicator measures the conditions of overbought and oversold in the asset market. It fluctuates between 0 and 100, with values above 70 indicating that the asset is overbought and may decline. Conversely, values below 30 signal that the asset is oversold and may recover.
The RSI indicator for ETH confirms the strengthening bullish sentiment regarding the altcoin, reinforcing the view that it may be poised for further growth.
ETH is strengthening its position above short-term support.
At the current price, ETH is above its 20-day exponential moving average (EMA), which forms dynamic support below its price at $1,770.
The 20-day EMA measures the average price of the asset over the last 20 trading days, giving more weight to recent prices. When the asset is trading above this key moving average, it signals short-term bullish momentum. This indicates that recent prices are rising above the average of the last 20 days. Traders often view this as a sign of internal strength or an early upward trend.
Thus, ETH may maintain its rise to $2,027 if buying pressure gains momentum. On the other hand, if buying activity decreases, the token may lose recent gains, break below the 20-day EMA, and fall to $1,385.
