Ethereum’s price has surged 44% in May, breaking key technical levels after a long decline. However, early signs of a potential pullback exist, though overall bullish sentiment remains strong. Experts recommend cautious trading to avoid losses in a volatile market.
Ethereum (ETH) has made a remarkable rebound in May, soaring a staggering 44%. This comes after a lengthy decline lasting 145 days. The price jumped from approximately $1,800 at the start of the month to over $2,600. Importantly, this uptick has seen Ethereum break through critical technical milestones, including the EMAs for the 50-day, 100-day, and 200-day averages, reflecting renewed optimism and substantial buying activity.
The upward movement really gained traction on May 8, following a period of stability where the price seemed to hover in a sideways pattern. Clearing the notable 200 EMA, currently around $2,430, has bolstered confidence in a potential long-term shift in price dynamics. Traders see this as a considerable momentum change after experiencing several months under bearish influences.
Nevertheless, some signs suggest that this rally might be due for a correction. Recently, the first red daily candle has appeared in this wave of upward momentum, indicating possible seller dominance. Moreover, the RSI has ascended beyond the 79 mark, signalling that ETH might be overbought, further increasing chances of a short-term pullback in prices.
Yet, it’s crucial to note that the overall uptrend still stands firm. A retest of the 200 EMA could present a reliable support area, providing a basis for another jump—potentially aiming for the psychological barrier of $3,000. While there’s a palpable excitement in the ETH community, experts advise traders to proceed with caution and avoid hasty investments without clear indication of sustained strength.
In short, while vigilance is key in the immediate term, Ethereum bulls are finally feeling hopeful after a prolonged phase of decline. A prudent consolidation in this period could pave the way for a subsequent significant rally in ETH’s valuation.
