ETH achieved a healthy pump during 4 May’s trading session after a 50 basis point rate hike was announced. The cryptocurrency has been trading within a falling wedge pattern for almost four weeks but it broke out of its resistance line after the announcement.
ETH registered a 6.2% rally after the Federal Reserve announced a rate hike within the anticipated healthy range. The rally was enough to push ETH out of its descending wedge pattern by breaking through resistance in its four-hour chart. However, the price uptick was short-lived and the price has so far dropped slightly.
Source: TradingView
A look at ETH’s indicators on the four-hour chart reveals that its RSI bounced from the neutral zone and approached the overbought zone. However, it still has some wiggle room before entering the overbought zone. Its MFI highlighted a bit of accumulation during the 4 May trading session. But some downside in the last few hours were registered, this was likely due to profit-taking after the rally.
What does the macro trend state?
ETH’s one-day chart reveals that its RSI is currently in the neutral zone, hence the resistance is at its current level. A crossing above the neutral zone would likely mean more upside.
Meanwhile, the DMI indicator reveals that the bears are losing their momentum and bulls are gaining traction. Well, the cryptocurrency enjoyed healthy accumulation in the last few days according to the MFI.
Source: TradingView
The observed accumulation is also backed by healthy growth according to some of ETH’s on-chain metrics. For example, the active addresses metric bottomed out at 446,078 addresses on 3 May. It registered a healthy uptick to 486,765 addresses by yesterday’s trading session.
The number of ETH addresses holding more than 10k ETH dropped to the lowest four-week level on 2 May with roughly 1,175 addresses. They have since then increased to 1,184, which means whales accumulated ETH in the last two days.
Source: Glassndode
An increase in addresses holding more than 10,000 ETH is a sign that large accounts are accumulating. ETH might thus be prepared for some more upside but this also presents a chance for some bear traps, hence some short-term selloffs are expected. More accumulation as we approach the weekend will confirm a bullish trend.
