Dark Clouds Over Ethereum, Will the ETH Bulls Clear the Skies?

• Ethereum is currently hovering around the $4.6K mark.
• The market has recorded over $342 million in ETH liquidations.

The crypto market is riding a volatile rollercoaster. Bitcoin (BTC), the largest asset, smashed through a new ATH yesterday at $124,457. Today, the market has turned bearish, with some tokens staying green. If the assets continue to remain under bearish pressure, the recovery might be difficult. Notably, the largest altcoin, Ethereum (ETH), has registered a plummet of 2.27%.

ETH’s sturdy bear hold of ETH would resist the bulls from entering the market. A breakout above $4.8K might initiate the rally toward $5K. The altcoin opened the day trading at around a high range of $4,765. Gradually, the bearish wave took command, pulling the price back toward the bottom level of $4,461.

As per the CMC data, at the time of writing, Ethereum traded at around the $4,638 zone, with the market cap reaching $559.36 billion. The daily trading volume of the altcoin has increased by over 19.22%, touching $74.45 billion. Moreover, the market has witnessed a liquidation of $342 million worth of Ethereum, according to Coinglass data.

Ethereum Waits for the Bulls to Roar

The active downtrend of Ethereum might likely pull the price back to retrace toward the $4,633 support. The reinforced bears could initiate the formation of the death cross, extending the loss. It would lead to the altcoin’s further correction on the downside to $4,628. Assuming the entry of a bullish wave, the Ethereum price might rise and test the resistance at $4,643. Further upside correction could push for the golden cross to take place and send the price to the $4,648 range.

ETH chart (Source: TradingView)

Ethereum’s Moving Average Convergence Divergence (MACD) line is settled below the signal line, which indicates the bearish momentum. The price may face downward pressure, and there are chances to continue it. Besides, the Chaikin Money Flow (CMF) indicator found at 0.34 suggests the buying pressure in the market, and capital is flowing into the asset. As the value is quite strong, it reveals the consistent accumulation, which supports upward price action.

In addition, the Bull Bear Power (BBP) reading of ETH at 30.13 signals the dominance of the bulls, taking the altcoin price high. As the momentum is firmly bullish, it hints at overextension. Ethereum’s daily Relative Strength Index (RSI) at 61.06 points to the slightly bullish sentiment in the market. Also, the price has more room to rise before hitting the overbought condition.

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