Ethereum has been on another decline along with the market. After struggling to cross $3,100, the digital asset had taken another beating down that saw it crash below $3,000 once again. However, this does not signal more downtrends. In fact, indicators point to the coming upside from Ethereum despite the recent trend, one that would see it test another important resistance point.
Ethereum Crossing $3,000?
It is no secret that Ethereum has largely fluctuated around $3,000. This price mark is important to the asset, hence the reason why bulls continue to battle hard to keep it. And as sentiment continues to move into the positive, the cryptocurrency is poised to be one of the top gainers from the coming rally. This will see it test a major resistance point before continuing on its upward trajectory.
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Although sell signals have continued to overpower buys for the digital asset, other aspects show growing bullish sentiment. A look at the 20-day moving average shows that Ethereum is currently trading above it. This is one of the signals that show how investors are looking at a digital asset in the long term and with ETH trading above this point, it shows that users are willing to purchase it at a higher price than they did over the last few weeks.
ETH crumbles to $2,800 | Source: ETHUSD on TradingView.com
For an asset like ETH, this could mean that a reversal is in the works for the cryptocurrency. After settling above its first support level of $2,780, $3,085 is naturally the next resistance point to test. Once broken, ETH could very well ride it until another test at $3,400, a more problematic bump for it to cross.
ETH holders Thrown Into Profit
More Ethereum holders are still in profit despite the recent downtrend. It has proven to be one of the more resilient assets with a strong holder base that holds through the worst and this is paying off for investors. Currently, Ethereum is one of the cryptocurrencies with the highest profit rate for investors even though it has lost almost 40% of its all-time high value.
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A total of 72% of Ethereum holders remain in profit even below $3,000. These holders, the majority of which have held their tokens for more than a year, are more bullish, “diamond hands” that are less likely to sell even in a downtrend.
On-chain and exchange signals are mostly bullish. However, with the price firmly below the 50-day moving average, it indicates more sell sentiment over the long term, indicating that any uptrend from this point will likely be short-lived.
Featured image from GreekReporter.com, chart from TradingView.com