Ethereum (ETH) Price Increases 4% Despite Weakening Bullish Momentum

Ethereum (ETH) price has climbed over 4% in the last 24 hours, although it remains down 17% over the past 30 days. In the last few days, ETH has been trying to stay above the $3,000 level, a key psychological and technical area that could influence its next move.

Indicators such as the Relative Strength Index (RSI) and Directional Movement Index (DMI) reveal that while ETH recently showed signs of bullish momentum, that strength appears to be fading. Whether ETH can regain its uptrend or face further corrections depends on its ability to hold critical support levels and overcome nearby resistance zones.

ETH RSI Is Down From Overbought Levels

ETH Relative Strength Index (RSI) is currently at 54.8, after reaching a low of 22.2 three days ago and peaking at 68.9 just one day ago. This movement indicates a rapid shift in momentum, as ETH moved from oversold conditions to levels nearing overbought territory before stabilizing closer to neutral.

The RSI’s decline from 68.9 to 54.8 suggests a cooling off in bullish momentum, as sellers have gained some ground after the recent sharp rally.

ETH RSI. Source: TradingView

The RSI, a momentum oscillator, measures the speed and magnitude of price movements on a scale from 0 to 100. Typically, an RSI below 30 signals oversold conditions and potential for a price reversal to the upside, while an RSI above 70 indicates overbought conditions, often preceding a price correction.

With ETH RSI now at 54.8, it sits in a neutral zone, implying a balance between buying and selling pressure. However, the drop from 68.9 could suggest that the recent rally is losing steam, possibly pointing to a period of consolidation or a mild correction unless new bullish catalysts emerge to reignite upward momentum.

Ethereum’s Uptrend Could Be Fading Away

Ethereum DMI chart reveals that the ADX is currently at 21.9, down from 39 three days ago, indicating a significant decline in trend strength.

The +DI has decreased to 27.2 from 34.1 one day ago, showing waning bullish momentum, while the -DI has risen to 26.5 from 18.2, signaling increased bearish pressure. This combination reflects a market where buyers are losing dominance and sellers are becoming more active.

ETH DMI. Source: TradingView

The ADX measures trend strength, with values above 25 indicating a strong trend and below 20 signaling a weak or indecisive market. Currently, the ADX is near 21.9, which points to fading strength in ETH price attempt to establish an uptrend.

With +DI only slightly above -DI, the balance of power is shifting, suggesting that unless bullish momentum recovers, ETH may struggle to sustain its uptrend and could enter a consolidation phase or face a potential pullback.

ETH Price Prediction: Will It Recover $4,000 Levels In January?

Ethereum price is currently attempting to establish a strong uptrend, with short-term moving averages trying to cross above long-term ones, a classic bullish signal.

However, indicators such as the ADX and RSI suggest that the bullish momentum may be weakening.

ETH Price Analysis. Source: TradingView

If the trend reverses, ETH could test its first support level at $3,158. A break below this could see ETH price falling further to $3,014. Should this level also fail to hold, ETH might decline as low as $2,723, representing a potential correction of 18.4%. Conversely, if the uptrend regains strength, ETH could test the resistance at $3,545.

Breaking through this level might pave the way for a move to $3,745, and if the momentum remains robust, Ethereum price could target $4,106. This would mark a significant milestone, pushing ETH above $4,000 for the first time since mid-December 2024.

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