Why Ethereum struggles to rally even as Bitcoin surges past $70,000
Ethereum saw a relapse in its positive trend, but could this be the start of its own rally, too?
- Ethereum was trading in the $3,800 price zone at the time of this writing.
- ETH was creating a string support for itself around this level.
Bitcoin [BTC] recently surpassed the $71,000 price mark, which typically shifts market focus to Ethereum [ETH]. An analysis showed that while ETH experienced a rally of its own, it was short-lived.
Ethereum fails to sustain momentum
An analysis of Ethereum on a daily timeframe chart revealed a slight positive movement at the end of trading on 4th June. The chart showed that ETH saw an increase of over 1%, bringing its price to around $3,810.
Although modest, this move pushed ETH into the $3,800 price region for the first time in days and marked its first positive movement in three days. However, as of this writing, ETH has returned to a negative trend.
Analysis showed that, despite maintaining the $3,800 price range, Ethereum was trading with a decline of less than 1%.
A study of the Relative Strength Index (RSI) indicated that it remained in a bull trend despite the recent poor price performance, with the RSI close to 65 at the time of writing.
Additionally, the $3,700 price range is emerging as the immediate support level, as the price has been consistently bouncing off this level since reaching it.
Ethereum volume shows positive signs
An analysis of Ethereum’s volume showed a recovery since the start of the new month. Initially, the volume fell to around $9 billion, but it has gradually increased, recently reaching its highest point this month.
By the end of trading on 4th June, the volume was around $13.5 billion, and as of this writing, it has risen to over $14.6 billion. This increase in volume is a key metric to monitor when predicting the potential direction of Ethereum’s price movement.
While the price has not significantly increased yet, the rise in volume indicates heightened activity, which could influence the price movement.
ETH in profit sees a slight increase
Analysis of Ethereum’s volume in profit revealed an increase of approximately 2 million ETH in the last 24 hours.
Read Ethereum (ETH) Price Prediction 2024-25
According to Santiment, at the end of trading on 4th July, the number of ETH in profit was around 129.5 million.
As of this writing, that number has risen to over 131 million. This increase means that the percentage of supply in profit has grown from about 93.4% to over 94%.
