A higher or stronger trend in forex trading can determine whether or not Ethereum hits a lower price
ETH came close to the overbought zone as the directional reversal was weak
Ethereum [ETH], the second largest cryptocurrency by market cap, has gained 8.74% in the past seven days. However, this increase may be short-lived according to analyst CryptoQuant. Joawedson, an analyst, said how the exchange rate affects ETH as the basis for his prediction.
It Doesn’t Hurt to Issue Ethereum
In addition, the process of the trading system is shown to serve as a model to evaluate the potential highs and lows. According to data from CryptoQuant, the exchange rate reached its highest value in November 2022.
The 7-day moving average (MA) also appears to follow a similar pattern. However, recently both measures have shown a decline from their peak. This means that investors who hold ETH for a long time may be disappointed by its long-term decline.
Therefore, Investors May Consider Selling Their Assets
At this time, Santiment showed that the supply of Ethereum in the exchange has been decreasing since December 9, 2022. Since there is no spike in this area, it means that the short-term tongue pressure is not too high.
This is different from what MA exchange rate investing shows. As a result, ETH has a chance to avoid capitulation for a while.
In other areas, the network received a profit and loss of 325,000. This gain represents a recovery from the sharp decline on January 1st. Note that the metric is used to calculate the profit or loss of the holders over a period of time.
Since the profit is not bad, this suggests an increase in investment. But since there is no sign of ascendancy, it is impossible to determine whether there is a strong desire.
Failure May be Imminent Because
Meanwhile, ETH’s impressive performance may actually slow down, as the daily chart shows. As of press time, altcoins have seen great demand. This helped push the Relative Strength Index (RSI) to 65.40.
This area shows that ETH is quickly reaching the level at which it was bought. Traditionally, if the RSI reaches the retracement area, Ethereum is likely to reverse its trend. Additionally, the Directional Movement Index (DMI) showed that the market’s strength was not as strong as investors might have expected. Although the DMI is positive (green) is high, the trend of the average direction (ADX) has not made the direction strong. At 21.78, the ADX (yellow) shows that ETH’s bullish direction is a bit empty.