Ethereum, cryptocurrency with the second largest market capitalization, is about to enter a disturbing state of calm. The graph begins to show the inertia caused by the action of wider prices, even if the asset is always higher than the means of significant short -term moving. ETH is currently negotiating at around $ 1,825, and he has trouble breaking local resistance convincingly levels.
Ethereum's volume profile is the most obvious concern. In recent weeks, the daily trading volume has decreased considerably and is currently close to historic stockings. It appears according to this volume, market players are not sure of themselves and that neither the bulls nor the bear are in charge. A market that awaits a catalyst and that is short of momentum is indicated by this classic signal.
Volatility has also collapsed. There is no indication of over-racket or occurrence conditions and the relative force index (RSI) is currently in neutral territory just below 60. This is in accordance with the lateral price movement that ETH has shown since mid-April. ETH has trouble maintaining a kind of long-term long-term momentum with the 50 EMA hovering just above current price levels.
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Nevertheless, this calm could be misleading. Just below a crucial psychological level from $ 1,900 to $ 2,000, Ethereum is consolidated. Consolidation periods as these frequently precede sudden directional movements. The absence of a volume of purchase seriously undermines the bullish case, but the current configuration leaves open the possibility of a brutal reversal.
The upward potential of Ethereum is limited unless there are macroeconomic catalysts or a peak in chain activity. In the meantime, a drop below 50 EMA (~ $ 1,765) would probably trigger a new series of sales, repelled ETH to $ 1,600. The following significant peak could determine the evolution of the following leg, investors should therefore closely monitor the volume.
