Ethereum Surges 10% Amid Mixed Market Signals

Ethereum (ETH) has experienced a notable surge, gaining over 10% in value over the past week. This upward trend has been accompanied by renewed market activity, suggesting a potential resurgence in investor interest. However, the underlying technical indicators paint a more nuanced picture, revealing a mix of weakening trend strength and cautious optimism from buyers.

Ethereum is currently navigating critical resistance zones that will be pivotal in determining whether the rally can be sustained or if it will falter. The momentum behind ETH remains fragile, making May a decisive month for Ethereum’s next significant move.

The Average Directional Index (ADX) for Ethereum, which measures the strength of a trend, has dropped sharply from 39 to 24.91 over the past two days. An ADX reading above 25 typically indicates a strong trend, while values below 20 suggest a period of weakness or range-bound trading. This steep decline in the ADX signals that Ethereum’s recent momentum is rapidly losing strength. Without renewed buying or selling pressure, ETH could remain in a volatile, sideways pattern in the short term.

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The directional indicators further highlight this shift. The +DI, which tracks bullish pressure, has decreased from 31.71 to 22.71 over the past three days. In contrast, the -DI, which tracks bearish pressure, has risen from 7.16 to 17.68 during the same period. Yesterday, the gap between buyers and sellers nearly closed, with +DI at 20.91 and -DI at 20.1, indicating that sellers almost regained market control. This rising bearish momentum, coupled with the weakening trend strength, increases the risk of Ethereum’s price slipping lower if buyers cannot defend key levels. However, if bulls manage to hold their ground and reclaim momentum, ETH could still attempt another recovery.

Ethereum’s Relative Strength Index (RSI) has climbed from 45.5 to 56 over the past day, after reaching 70.46 four days ago. The RSI is a momentum indicator that measures the speed and magnitude of price movements. An RSI above 70 suggests an asset is overbought and may be due for a pullback, while an RSI below 30 indicates oversold conditions and the potential for a rebound. Readings between 30 and 70 are considered neutral, with levels around 50 often signaling a market at a decision point. The sharp swing in Ethereum’s RSI over the past few days reflects the recent volatile sentiment around ETH.

With the RSI back up to 56, Ethereum has regained momentum after dipping into neutral-to-bearish territory. A reading above 50 leans slightly bullish, suggesting that buyers have started to reassert some control, though not with overwhelming strength. If the RSI continues to climb toward 60 and beyond, it could signal a renewed push higher for ETH prices. However, if momentum stalls again and the RSI turns back down, it would suggest the recovery is losing steam and that Ethereum could fall back into a broader consolidation or even a correction phase.

Ethereum’s price has made several attempts over the past few days to break above the resistance level at $1,828. If ETH manages to break and hold above this level decisively, it could open the door for a stronger move upward. The next major target would be $1,954, and if bullish momentum remains strong, a further rally toward $2,104 could unfold. Ethereum could eventually test $2,320 in an even more aggressive uptrend, marking a significant bullish extension. These levels will be key to watch as they could define the strength and sustainability of any breakout in the coming days.

On the downside, if Ethereum fails to hold its current levels and the trend reverses, the first critical support to watch lies at $1,749. A break below that could trigger a move lower toward $1,689. If selling pressure intensifies, ETH could extend the downtrend even further, with major support levels at $1,537 and $1,385 coming into play. Losing these levels would signal a much deeper correction, suggesting that the recent attempts at recovery were only temporary before a more prolonged bearish phase sets in.