Ethereum (ETH) shows strong and cautious signs after rising 49% in the past week. While its market capitalization has returned to over $300 billion and EMA indicators remain optimistic, momentum indicators are beginning to cool down.
ADX has dropped from 61 to 47.99, and RSI has decreased from 86 to 63, indicating that the upward trend may be losing momentum. However, buyers remain active, and if ETH breaks through an important resistance level, the next rally could push it above $3,000.
ETH's DMI Signal Shows Price Rally Cooling and Selling Pressure Increasing
Ethereum's DMI indicator shows its ADX has dropped from 61 to 47.99, signaling that trend strength is weakening.
ADX (Average Directional Index) measures trend intensity, with values above 25 indicating a strong trend and above 40 showing very strong momentum.
The declining ADX, though still high, may indicate that the current trend is losing steam, despite analysts recently pointing out that Ethereum could overtake Bitcoin.
ETH DMI. Source: TradingView.The +DI line has sharply dropped from 47.96 to 27.2, showing that price momentum has significantly cooled.
Meanwhile, the -DI line has increased from 3.39 to 13.97, indicating that selling pressure is beginning to rise.
Although the trend still supports buyers, the gap between +DI and -DI is narrowing, and if this continues, Ethereum may face a short-term correction or enter an accumulation phase. However, in recent hours, +DI has increased and -DI has decreased, showing that ETH buyers are trying to maintain control.
Ethereum's RSI Cools from Overbought Zone but Maintains Upward Trend
Ethereum's RSI has dropped to 63 from a high of 86 three days ago, after remaining above the 70 overbought threshold for three consecutive days.
Interestingly, despite the recent decline, RSI has bounced from 54 just a few hours ago, indicating some new short-term buying interest.
ETH RSI. Source: TradingView.RSI (Relative Strength Index) is a momentum indicator that oscillates from 0 to 100. Values above 70 typically indicate overbought conditions and potential correction, while values below 30 show oversold conditions and potential rebound. Values between 50 and 70 usually indicate moderate price momentum.
At 63, Ethereum's RSI shows the asset has cooled from recent overbought levels but still maintains underlying price strength. This could mean the market is adjusting after a strong rally, creating conditions for another rally if buying continues.
Ethereum Targets $3,000 After 43% Weekly Gain, but Important Resistance Remains Firm
Ethereum price has risen 43.5% in the past seven days, with its market capitalization climbing back above $300 billion. Its EMA lines continue to show a strong price structure, reinforcing the current upward trend.
However, ETH recently tested the $2,617 resistance level and was unable to break through.
ETH Price Analysis. Source: TradingView.A successful breakthrough above that level could pave the way to $2,855 and even $3,000 for the first time since early February, with potential expansion to $3,442 if momentum accelerates.
On the downside, the $2,320 support is crucial. If ETH tests and loses that level, the price could slide to $1,938. A more significant downward move could push it further down to $1,736.
