Key Points
- Ethereum [ETH] is trading below the $2.8k resistance zone, with a possible breakout toward $3,350.
- Lackluster demand and negative exchange netflows could potentially hinder this breakout.
Despite the slow upward movement, Ethereum [ETH] has been trading under the $2.8k resistance zone since August. This recent move lacks explosive momentum but has been gradually building since September.
Accumulation in Progress
Negative exchange netflows indicate an ongoing accumulation. However, it remains uncertain whether this would be sufficient to propel prices beyond the three-month highs.
Ascending Triangle Pattern
Ethereum has been creating a pattern of higher lows since September, but has struggled to surpass the $2.8k resistance zone. This has resulted in an ascending triangle pattern. The OBV has slowly increased over the past two months, albeit still below the levels seen in June and July.
The tepid demand could potentially diminish the size of the breakout. If the daily session closes above $2.8k, it could ideally reach the $3,350 level.
However, this breakout may not be immediate and could take a few days to happen. A dip toward $2.5k is also a possibility. The RSI is bullish, but did not indicate a clear trend in October. The DMI corroborates this, with the ADX (yellow) falling below 20 at the time of writing.
Volume Concerns on Lower Timeframes
The Open Interest and the price have shown a strong upward trend in the past three days. The funding rate has also surged in the past 24 hours. These signals indicate a firm bullish sentiment in the lower timeframes.
Despite ETH being up by 9.4% since October 26th, the spot CVD failed to increase. This lack of spot demand, along with the weakness shown by the OBV, raises questions about the strength of the bulls.
The information provided here does not constitute financial, investment, trading, or other types of advice and is solely for informational purposes.
