The main altcoin ETH defied the broader market downturn in the last 24 hours, recording modest gains of about 1%. At the time of publication, the coin is priced at $1,842.
This comes as an important momentum indicator — the buy-sell ratio of traders — reaches its highest level in 30 days, signaling renewed bullish pressure in the asset's futures market.
Traders see bullish potential in ETH with buying pressure and building
According to CryptoQuant, the buy-sell ratio of ETH traders is currently at 1.08, marking its highest value since early April.
Buy-Sell Ratio of Ethereum Traders. Source: CryptoQuant
This indicator measures the relationship between buying and selling volumes in the ETH futures market. A value above 1 suggests that more traders are buying contracts aggressively than selling, while values below 1 indicate dominant selling pressure.
With 1.08, the buy-sell ratio of the asset's traders clearly favors buyers, reflecting the increasing confidence among traders that prices may continue to rise.
Furthermore, the Relative Strength Index (RSI) of the altcoin continues to rise, supporting this optimistic narrative. At the time of publication, it is at 58.39 and increasing.
RSI of Ethereum. Source: TradingView
The RSI indicator measures market conditions of overbought and oversold for an asset. It ranges from 0 to 100, with values above 70 indicating that the asset is overbought and may experience a decline. Conversely, values below 30 signal that the asset is oversold and may experience a rebound.
The RSI reading of ETH confirms the bullish bias towards the altcoin, reinforcing the view that it may be poised for further gains.
ETH gains strength above the short-term support
With its current price, ETH is above its 20-day exponential moving average (EMA), which forms a dynamic support below its price at $1,770.
The 20-day EMA measures the average price of an asset over the last 20 trading days, giving weight to recent prices. When an asset is traded above this key moving average, it signals a short-term bullish momentum. This indicates that recent prices tend to be higher than the average of the last 20 days. Traders often see this as a sign of underlying strength or an initial upward trend.
Therefore, the coin could maintain its high towards $2,027 if buying pressure strengthens.
Ethereum Price Analysis. Source: TradingView
On the other hand, if buying activity decreases, the coin may give up recent gains, fall below the 20-day EMA, and drop towards $1,385.
The article Ethereum (ETH) bulls regain strength was first seen on BeInCrypto Brazil.
