Assessing Whether Ethereum (ETH) Can Extend Its Current Gains

  • ETH’s latest reversals from a resistance level confirmed buying pressure wane.
  • The alt saw a significant decline in 24hr active users within the past day.

Ethereum recorded double-digit surges within the previous seven days. That came after the alternative token broke from a triangular structure. Meanwhile, the upside beyond the Bollinger Bands basis line positioned the token around its upper band, depicting a buying superiority.

Extended actions by the latest reversals from the immediate ceiling might welcome declines before potential reversals. While publishing this content, ETH changed hands at $1,499.47, plunging by 3.1% within the past 24 hours.

ETH Witnessed Bullish Volatile Break – Can Buyers Maintain their Superiority

Ethereum bears showed dedication to countering buying momentum around the 7-month trend-line resistance following the breakdown from the 24hr rising wedge. Consequently, Ethereum maintained southbound tendencies as it struggled to overcome the $1560 – $1,600 value area.

Meanwhile, the latest price actions formed a symmetrical triangle break, following a sharp upsurge. Meanwhile, the resistance range might welcome red candlesticks for the alternative token. Declines from such developments might open the path for a $1,440 retest in the upcoming days.

Any dip beneath this area might see sellers dragging ETH toward the support level at $1,380. Buyers can use this foothold to initiate a short-term rebound. Meanwhile, a swift rebound beyond the BB’s upper band would confirm bearish invalidations.

Buyers should overcome the ceiling of $1,600 for such tendencies. The OBC (on balance volume) highlighted bearish cues after its lower highs confirmed a bearish divergence with the price. Moreover, the RSI (Relative Strength Index) reversed from overbought levels, highlighting buying pressure ease.

Declines in Exchange Inflows & Daily Active Addresses

The leading alt noted substantial declines in daily active addresses within the past 24 hours. The metric plummeted to levels never witnessed since October 2020. Moreover, the price action tends to drop after upticks in exchange inflows.

However, ETH reacted to the latest upswing on this metric with a price surge within the past few days. Any underlying selling strength from these readings could welcome continued slumps before reversals.

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