The price of Ethereum (ETH) is in the consolidation phase, bargaining below $ 3,000 from February 2. Technical indicators say that neither buyers nor sellers control the situation completely.
We understand whether ETH can gain strength to break through the key resistance of $ 3,000 in the coming weeks.
The narrowing of the gap between its EMA lines hints at possible changes, but ETH should overcome the key resistance levels in order to restore the bull impulse. Meanwhile, if support levels cannot resist, a deeper correction is possible by $ 2,160.
RSI for Ethereum stuck in a neutral zone
The relative force (RSI) index for Ethereum has been kept on neutral territory from February 3. At the time of publication, it is at 54.2. This suggests that the forces of sellers and buyers are approximately equal.
So that ETH has the opportunity to rise to $ 3,000 of the relative force (RSI) index (RSI) should overcome the mark of 60, which will talk about the strengthening of the interest of customers. The RSI movement above 70 will indicate the formation of a strong ascending trend that can lead to a breakdown of key levels of resistance.
DMI indicator: Ethereum loses the direction of movement
The directed traffic index (DMI) Ethereum shows the weakening of the trend. DMI consists of three components: the average orientation index (ADX) and two directed indicators (+di and -di).
ADX, the main component of DMI, decreased from 32.8 to 11.8 from February 12. When ADX falls below 20, this indicates the absence of a clear trend in the market. The values ​​above 25, on the contrary, indicate a strong trend.
The remaining DMI components also demonstrate a decrease in activity. A positive indicator (+di) fell from 25.2 to 19.3 in two days, and the negative (-DI) decreased from 18.8 to 17.2. This suggests that both sellers and buyers lose interest in the asset.
For the growth of ETH above $ 3,000, it is necessary for the ADX to rise above 20, and the gap between +di and -di increases in favor of customers.
ETH Forecast: Where will the price go in February
Since February 7, the price of Ethereum is moving in the range of $ 2 550-2 800. The short-term sliding medium (EMA) remain below long-term, which indicates the predominance of a bear trend. However, the gap between the EMA lines is reduced, hinting at a possible turn.
To achieve $ 3,000 in February Ethereum, it is necessary to overcome two resistance levels: first $ 2,800, then $ 3 020. While maintaining a positive dynamics, ETH can reach $ 3,442 – the maximum of the end of January.
However, if the price drops below the support of $ 2,551, it is possible to fall to $ 2,160.
We summarize:What you need Ethereum for growth above $ 3,000
Ethereum is in a neutral position. Here are what technical indicators will say that the advantage swayed towards the bulls:
- • RSI increase above 60, and preferably higher than 70
- • ADX growth above 20 to form a clear trend
- • Increasing the gap between +di and -di in favor of buyers
- • Overcoming the resistance $ 2,800 and $ 3 020
Subject to these conditions, ETH can not only reach $ 3,000, but also test the level of $ 3,442 – a maximum of the end of January.
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Source: Cryptocurrency
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