- Ethereum shows steady upward movement, climbing toward the $3,560 resistance level but encountering slight slowing momentum.
- Volume remains subdued, potentially limiting the breakout potential in the short term without renewed buying interest.
- RSI points to mild overbought conditions, signaling caution for traders as the rally approaches a critical threshold.
Ethereum’s daily chart demonstrates a gradual recovery, with the asset gaining traction from its previous lows near $3,360. The price has steadily climbed, closing near $3,560 at its recent high. This movement reflects consistent buying interest but lacks the volume to signal robust momentum.
The price’s approach to a resistance zone at $3,560 suggests a possible consolidation phase if Ethereum fails to break this level. Buyers will need to increase participation to sustain the current rally and avoid retracement toward the $3,480 support.
Technical Indicators Show Overbought State
The Relative Strength Index (RSI) indicates Ethereum is nearing overbought levels, with a reading close to 70. This suggests that buying pressure could be easing, making it more challenging for the price to maintain its upward trajectory without a surge in trading activity.
Volume trends remain modest, failing to support a strong breakout above $3,560. If this level is not breached, sellers may regain control, driving the price toward $3,480 or even lower support levels.
Trump Hype May Still Trigger Rally
Ethereum faces a pivotal test as it approaches $3,560. A sustained move above this level could pave the way for gains toward $3,600 and beyond. However, failure to break the resistance might result in a pullback, with $3,480 and $3,400 acting as key support zones.
Traders should monitor broader market dynamics and watch for significant volume spikes, which could indicate the next major price move. While the trend remains bullish, caution is warranted due to the overbought RSI and inconsistent volume support.
