This Indicator Suggests That Ethereum Will Reclaim $3k

Ethereum is on the verge of marking its fourth day of consistent upticks. It rebounded from a drop to $2,754 a few hours ago, peaking at its highest value since February.

The largest altcoin continues its uptrend after flipping a key level on Tuesday. It broke above $2,800, which is unsurprising given that a previous outlook had hinted at such an event. 

Nonetheless, the asset is shaping for another massive leap at a critical level. It peaked at $2,880 a few hours ago as it edged closer to $2,900. However, there are concerns that the uptrend is coming to an end. 

The smaller candle at the time of writing presents a case for this conclusion. It may indicate a growing exhaustion among the bulls. The sharp decline at the start of the day suggests some profit-taking that may resume in the coming days.

A user on X noted the growing bearish presence and concluded that the largest altcoin is at a crossroads. He presented the chart above, buttressing his point. The image reveals a possible retracement if the bulls fail to sustain the ongoing uptick. Conversely, it pointed to an impending attempt at $3k. 

Data from Glassnode supports further upside movement. It noted that the ETH short-dated options were repriced over the last 48 hours. On the 1-week IV, it rose from 65.2% to 79%. While the 1-month IV, it surged from 66.4% to 72.1%. Both readings indicate that the asset is experiencing a new level of demand as options traders anticipate more upside movement.

The ETH options skew presents similar evidence. The 1-week skew surged from -2.4% to -7%, while the 1-month skew increased from -5.6% to 6.1% in the last 48 hours. Both metrics point to a shift in investors’ strategies, with a focus on short-term trading to maximize profits.

Ethereum Will Retest $3k

The moving average convergence divergence (MACD) reveals that the 12 EMA crossed above the 26 EMA a few hours ago. The bullish divergence indicates an impending breakout from its four-month trend. 

Other metrics, such as the ADX and momentum indicator, also print a similar buy signal. The average directional index shows a notable upward pull as it surged higher over the last three days. Momentum readings coincide with the previous metric, indicating a strong upward push and bulls maintaining it.

Reading from the three indicators hints at further upside movements. Ethereum trades slightly below the 78% Fibonacci retracement level. The asset will break above this level and edge closer to $3k. However, the pivot standard indicates a notable selling pressure at the first resistance, around $2,960. Nonetheless, the PPS shows a huge certainty of an attempt at $3,000 after breaking R1. 

Conversely, in addition to the concerns about the next price action due to the shortened candle, other metrics like RSI and BB blare warnings. The relative strength index is at 68, suggesting room for further price increases but signaling an impending end to the uptrends. 

Ethereum broke above the bollinger bands on Tuesday and continues above the indicator. It hints at an impending uptick as the asset is experiencing peak volatility. The more than 11% decline in trading volume over the last 24 hours heightens these concerns. 

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