After clearing a key obstacle, ETH bulls gained more advantages. However, there is still one obstacle to overcome
After clearing a key obstacle, ETH bulls gained more advantages. However, there is still one obstacle to overcome.
- ETH breaks through trend line resistance levels.
- Encouragement from bulls; OI is fluctuating around $6 billion.
Ethereum has released mixed results in the past week. It rebounded between Monday and Tuesday (May 22-23), hitting $1873, and then reversed its two-day increase on Wednesday (May 24).
However, Wednesday's decline reversed over the weekend (May 27-28), with ETH rising 1.5% per week as of the time of publication.
At the same time, Bitcoin [BTC] held its ground and recovered $27000 after a large number of options expired on May 26 and the US debt ceiling continued. Will May end with a bullish tone?
Is there a possibility of a bullish breakthrough?
Since May 9th, ETH's trading range has fluctuated between $1761 and $1856. Shrinking hours, the price trend has been in a downward trend since breaking through $2100 in mid April. Trend line resistance (orange line) has always been the main obstacle for bulls, and converges with the key Price ceiling of $1825 in March.
Although bulls have cleared convergence barriers, at the time of writing, ETH has not yet formed a bullish breakthrough from its sideways structure.
The closing price above the range high may cause the ETH to rebound to $1935 or its recent low high of $1997.
However, if BTC does not soar to $28000, ETH may continue its horizontal structure. In this case, prices may fluctuate between extreme ranges.
At the same time, RSI crossed the neutral barrier and reiterated the recent buying pressure. CMF (Chaijin Capital Flow) has also risen above the zero line after fluctuations in the past few days, highlighting an improvement in capital inflows.
Is OI stable, causing bullish breakthroughs?
According to Coinglas, over $5 million in short positions have been liquidated in the past 24 hours. But the long position of less than $2 million during the same period was damaged, reaffirming the bullish outlook.
However, from May 6th to 24th, Ethereum's open interest rate (OI) averaged approximately $6 billion. This indicates that the demand for ETH has stagnated. However, an increase in OI may indicate that ETH bulls are above the formation of the range, causing bullish breakouts.
Thank you for watching. Friends who like it can click like to follow. See you next time!
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
