Ethereum (ETH) prices have struggled to regain momentum after losing the $3,000 threshold on February 2nd, and have since fallen below that level. Over the past 30 days, ETH has declined by more than 20%, reflecting on continued market weakness and uncertainty regarding the next move.
Technical indicators like DMI suggest a lack of clear trends, with bullish and bearish pressures becoming weaker these days. Meanwhile, ETH supply in exchanges drops to a lowest level in 6 months, potentially showing accumulation, allowing for a drop in sales pressure and setting stages of recovery attempts.
Ethereum DMI shows no clear trends
Ethereum’s DMI chart reveals a trend towards weakening as ADX has declined from 33.8 in the past day to 27.5. ADX or mean directional index is an important indicator used to measure trend intensity. Measurements above 25 usually show a strong trend, while values below 20 indicate a weak or non-existent trend.
The downward movement of ADX suggests that Ethereum’s recent trends have lost momentum rather than gaining strength.
Looking at the directional indicators, +DI fell from 17.8 to 15.7, while -DI also fell from 22.9 to 21.5. This suggests that both trading pressures will weaken and Ethereum does not have a clear directional bias.
-DI is still above +DI, so the bears maintain a slight edge, but the ADX decrease indicates that this trend is not gaining traction.
This setup refers to a phase of integration or reversal of potential trends rather than a continuation of strong bearish momentum. Until there is a clear divergence or ADX rise in directional indicators, Ethereum’s next move remains uncertain.
ETH supply on the exchange reached its lowest level in six months
ETH supply on the exchange has undergone significant changes over the past few weeks. After an increase from 1.35 million on January 19 to 10.73 million on February 1, the exchange balance has since declined sharply, falling consecutively to 963 million.
This steady decline in ETH held on the exchange indicates a significant change in investor behavior and could affect price behavior in the short term.
The supply of ETH on exchanges is an important indicator in understanding market sentiment. A rise in exchange balances suggests investors are preparing for sale. This can create sales pressure and lead to bearishness.
Conversely, a decrease in Ethereum supply on the exchange means investors are moving their holdings to private wallets, reducing immediate sell-side liquidity.
This trend is generally considered bullish as it suggests confidence in holding rather than selling. ETH exchange supply currently shows strong accumulation at its lowest level in six months, potentially setting upward price momentum, lowering sales pressure.
ETH Price Prediction: Can Ethereum return to $3,000?
The Ethereum Price Chart shows its EMA line still exhibits a bearish structure, indicating that its short-term moving average is below the long-term one.
This suggests that ETH prices have not yet established a confirmed uptrend. However, if you buy momentum, you could initially challenge resistance to $2,798 if the ETH can recover sustained upward movement.
A successful breakout above this level could open the door to earn more profits towards $3,024. If bullish momentum continues, ETH will ultimately target the next major resistance at $3,442, showing a complete trend reversal upwards.
On the other hand, if an upward trend is not established, the ETH price will be $2,524 and will be vulnerable to retesting key support.
Breakdowns below this level, especially with increased sales pressure, could confirm a continuing bearishness and further reduce ETH to another $2,163.
Disclaimer
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