With the fear sentiment overhanging in the crypto market, the majority of the assets fall into the red zone. As they lose momentum, the price movement is facing a correction on the downside. Meanwhile, the largest altcoin, Ethereum (ETH), has been stuck in the bear trap, registering a modest gain of over 0.27% in the last 24 hours.
The altcoin’s negative outlook is gaining traction day by day, resulting in hindering the emergence of bulls in the ETH market. A jump above $3.3K could give a hand, making the recovery easy. Besides, the asset’s lowest and highest trading level of the day was noted at around $3,034.69 and $3,148.03, respectively.
At the time of writing, Ethereum traded within the $3,112 range, with its market cap resting at $376.34 billion. Significantly, the daily trading volume has surged by over 88.74%, reaching the $18.92 billion mark. According to Coinglass data, the market has experienced a 24-hour liquidation of $63.96 million worth of ETH.
Could Ethereum be Setting the Stage for a Short-Term Rebound?
With the active bearish momentum of Ethereum, the price action could slip deep down toward the $3,092 support. The steady downside trajectory might trigger the death cross to take place, accelerating the drop, facing a correction and retrace below $3,070.
Conversely, assuming the altcoin bulls initiate an upward movement, the ETH price might climb to the resistance level at around $3,132. Upon breaking this level, it would invite the golden cross to unfold, and gradually, send the altcoin price above the $3,155 range.
When ETH’s Moving Average Convergence Divergence (MACD) line and the signal line are positioned beneath the zero line, it points to the ongoing bearish momentum. Any short-term price rebounds will be weak unless the momentum starts shifting upward.
In addition, the Chaikin Money Flow (CMF) indicator of Ethereum is found at -0.02, which implies slightly more capital flowing out than in. Notably, the selling pressure is weak and not aggressive. This likely hints at a mild distribution rather than a strong bearish trend.
Moreover, the Bull Bear Power (BBP) value of ETH at 7.83 indicates that the bulls are currently in control. Also, if this continues to rise, it supports the uptrend; a drop toward zero would signal fading strength. Ethereum’s daily Relative Strength Index (RSI) at 48.82 suggests a neutral sentiment. The market is in equilibrium, showing indecision. A move above 50 builds bullish strength, and a drop below 45 strengthens the downtrend.
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