Ethereum Price Movement Analysis for 3rd May, 2021

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On May 3, the price of Ethereum reached a new high of $3,205. On Monday, ETH experienced a 9.07 percent surge, and the price increased from $2,928 to $3,205 in nine hours.

At press time, ETH was priced at $3,145 after a brief retracement.

Ethereum one-hour chart

The above graph depicted the steady increase in the value of ETH. Despite the bearish bumps in the Bitcoin industry, the altcoin has been increasing. This was an indication of the deterioration of the correlation of the two leading cryptocurrencies.

However, with the recent market fluctuations, it was difficult to track the digital asset’s movement.

Reasoning

With the latest price increase, the ETH market has become more volatile in the coming days. Bollinger Bands have been diverging, although the signal line and 50 moving average have stayed under the candlesticks, suggesting a bullish sector. A potential correction could occur as the price rises within an ascending channel.

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Buyers have flooded the ETH market while the commodity has stayed in an overbought position, as shown by the relative strength index. Meanwhile, Chaikin Capital Flow was noticing that an increasing amount of money was entering the ETH market. Since April 25, the indicator has stayed optimistic and has not fallen below zero.

This was a rather bullish indicator for Ethereum investors since the market was holding the digital asset’s price. And if a reversal occurs, traders will be able to hold the price level higher.

Conclusion

The new Ethereum market was visibly unpredictable, but the uncertainty aided in the price increase. Buying pressure has stayed strong as the market waits for a correction.

 

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