Key Points
- After a turbulent start to July, Ethereum has finally clocked over the $3k mark.
- The trading volume increased reflecting the robustness of the market.
- Mixed trader sentiment is due to the ongoing volatility in the market.
- RSI shows that the Market Sentiment is still recovering but not yet bullish.
ETH, having tumbled greatly, has finally broken above the $3000 mark. This recovery comes after a period of significant turbulence with prices kept steady above 48 hours within the range of 3000 dollars.
Ethereum Finally Breaks Above $3K! How Did ETH Regain Its Highs? 📈🚀
Source: AMBCrypto#eth #ethereum #CryptoInvestors #cryptocurrencycommunity #cryptocurrency #cryptocurrencynews #TradingSuccess #tradingstrategy pic.twitter.com/sEhseGY0sf
— Lets Talk ETH (@LetsTalkETH) July 10, 2024
Journey to $3K
July commenced on a brittle note for Ethereum. On July 1st, ETH was valued at approximately $3430. It stayed within this range despite some slight drops on July 2nd.
However, by July 5th, Ethereum traded down significantly to around $2,980. From hereon prices went into periods of fluctuation where it would drop then gain again for a while as supposed earlier on.
By July 8th, there were signs that Ethereum had begun its recovery with a nearly three percent rise bringing it up to around three thousand eighteen dollars per coin. ETH presently trades at about three thousand and eighty-three dollars signifying an increase of over two percent.
The Relative Strength Index (RSI), which measures market sentiment has also shown slight improvement although it remains below neutral level at around forty. This indicates that though there is some recoveries, it may be perceived from this perspective that market sentiment still remains bearish in nature.
Mixed Sentiments Among Traders
The analysis of Ethereum’s exchange netflow from CryptoQuant reveals a fluctuating pattern between inflows and outflows. Ether displayed positive netflows for two consecutive days as more coins were deposited into exchanges rather than withdrawn during this period creating stronger selling pressure and probably indicating profit-taking or stop-loss selling among traders.
However, the net flow before several days indicated negative values. This is a normal occurrence when people are moving their holdings either to private wallets for long-term holding or reducing exposure to exchange-related risks.
There appears to have been no significant bias towards heavy inflows or outflows indicating that trader sentiment has largely remained consistent.
Surge in Trading Volume
The analysis of Ethereum’s trading volume over the past 48 hours indicates a noticeable increase, signaling a revival in market activity. There was a brief drop in trading volume on July 7th as seen in data from Santiment down to approximately $10 billion at one point.
However, this fall was very swift and by the 8th of July, it had gone up to above 21 billion dollars and still stands at more than 19 billion dollars as of now.
This increase in trading volume coupled with the current price trend implies that buying activity has outweighed selling. As such dominance of buyers is a positive indication for Ethereum to show strong interest and confidence in the market.
Ethereum managed to break above the $3k mark after months of decline and volatility which is an important milestone achieved. The mixed sentiments among traders as represented by changing netflows and increased trading volumes indicate a highly dynamic marketplace.
While RSI suggests that market sentiment is still recovering from lows; overall trends suggest some cautious optimism around Ethereum’s future fortunes.
