Ethereum Price Movement Analysis for 31st May, 2021

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At the time of writing, Ethereum’s price has risen in tandem with the Bitcoin market. On May 31, the second-largest cryptocurrency was seeing moderate increases, but in the last four hours, a big pump of over 10% lifted ETH’s price to $2,540, where it is presently trading.

Ethereum hourly chart

The jump in Ethereum’s price has undoubtedly turned the trend for ETH as it has risen higher on the price scale. Short-term bearishness was pushed out, and the market was enjoying price rise. This appreciation, however, may be followed by another downturn.

Reasoning

Volatility will rise as interest in the present price of ETH grows. However, as the price went over the 50 moving average and the signal line, traders began to support it. The majority of these traders were purchasers who were actively involved in driving up the price.

The increased purchasing pressure was also reflected in the Relative Strength Index, which was now at 67, near to the overbought level. Even though ETH has not yet entered the overbought zone, RSI indicated that buyers were in control. Meanwhile, the momentum has shifted to the bullish side, as Awesome Oscillator has seen increased purchasing activity. Because the momentum has not been impacted by selling pressure, it appears to be growing in tandem with the price.

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Crucial levels

Entry-level: $2,512
Take Profit: $2,401
Stop-level: $2,586
Risk to Reward: 1.5

Conclusion 

Because the present market has resulted in gains for Ethereum, the asset may see another downturn. Indicators indicate that Ether was becoming saturated by purchasing pressure, calling the price’s stability into doubt. With resistance around 2,552, Ether holders may wish to establish short bets to protect their portfolio and profit if ETH falls to $2,401.

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