Ethereum crossed above the $3,000 level as the crypto market licks its wounds after going through a tough time. Funds start flowing into ETFs, and the market sentiment has got better so much so, that ETH is appreciating despite the technical indicators signalling bearish conditions.
Ethereum has been crashing since November 10. The coin, which was trading at around $3,650 in early November, crashed to its lowest price of $2,700 last week. However, after reaching its lowest point, the coin has mustered the strength to go at it once again.
With the broader market healing and the sentiment of the market getting better, Ethereum crossed above the $3,000 level as it continues its upward trend. The Fear and Greed Index, which captures the overall sentiment of the traders, moved out of the extreme fear zone, indicating the traders are more relaxed, as the market recovers.
More than $55 million in funds moved into ETH ETFs for more than a week continuously, showing the increase in confidence of the traders. ETH ETFs saw positive netflows after more than a month of investors withdrawing their funds from ETH ETFs.
The confidence level of the market has been growing. Be it in terms of the value projected on the Fear and Greed Index or the net inflow of funds into the ETF. The market has been performing so much so that it has trumped the technical indicators.
As shown in the chart below, there was a death cross that occurred. The 50-day Moving Average intersect the 200-day MA below it. After a death cross, the prices usually crash drastically; however, the fundamentals surrounding Ethereum (ETFs) and the overall crypto market were so good that the death cross did not affect Ethereum’s prices.
ETH is currently trading inside the falling wedge, and it is testing the upper trendline. As it approaches the upper trendline, a breakout is imminent as the Moving Average Convergence and Divergence (MACD) indicator has started to rise, while the histogram turns green.
When ETH breaks out, the first resistance would be at $3,450, and thereafter, it will hit resistance once again at $3,800. However, according to crypto analyst Daan, it is ‘Not a good market to stay overly bullish or bearish for the past few years. Need to remain nimble.’
