Key Points
- Ethereum [ETH] experienced a 6% rise from its lows on 29th March, but the market remains cautiously bearish.
- Despite the increase, trading volume and market indicators suggest a continued dominance of selling pressure.
Despite a 6% bounce from its lows on 29th March, Ethereum [ETH] remains in a cautiously bearish market. This rise occurred alongside a 5.8% increase in the value of Bitcoin [BTC].
Market Indicators and Trading Volume
Despite the rise, the market is not yet dominated by bullish traders. Technical indicators suggest a rising selling pressure, and the short-term sentiment remains bearish. Exchange reserves, however, are falling, indicating a possible accumulation of the token.
ETH managed to climb above the $3360 resistance, but its trading volume has been low over the past ten days. The OBV suggests that the selling volume has been dominant since mid-March, following a rejection from $4100.
RSI and Social Dominance
The Relative Strength Index (RSI) has been fluctuating around the neutral 50 mark over the past two weeks, indicating no clear trend. Its move below the neutral 50 earlier this month was an early indication of bears gaining the upper hand.
The 30-day MVRV ratio was negative, suggesting an undervalued asset. Despite a large spike in dominance circulation on 26th March, the market has been quiet since, indicating that another wave of selling is not imminent.
The number of Daily Active Addresses has slightly declined since mid-March, but remains strong compared to earlier this year. The Social Dominance chart, which tracks social media engagement, has plunged, indicating a significant decline in interest around Ethereum in recent weeks.
The spot CVD has also been in a strong downtrend over the past week, indicating selling pressure in the spot markets. This suggests that traders could anticipate more losses. The Open Interest has climbed from $9.2 billion to $9.46 billion in the past 24 hours alongside the price, indicating willingness from speculators. Despite this, the short-term bias remains bearish.
The information provided does not constitute financial, investment, trading, or other types of advice and is based on market observations.
