Ethereum is showing significant growth, but analysts warn of possible corrections. Let's explore current market signals and factors affecting ETH's price.
Analysis of Sell Signals
Analyst Ali Martinez pointed out a sell signal for Ethereum indicated by the TD Sequential indicator on the daily chart. He noted that the price of ETH could fall to around $3,980 or $3,860 if it drops below $4,150. However, despite these warnings, overall market sentiment remains quite optimistic in the anticipation of a new altcoin season.
Supporting Factors for Price Growth
The continued inflow into spot Ethereum ETFs and accumulations by Ethereum-related companies have been the main drivers behind Ethereum's price surge. Institutional investors have increased their participation, spending $8.2 billion on ETH purchases year-to-date. Last week alone, $268 million in inflows bolstered assets under management to a record high of $32.6 billion.
Current Metrics and Forecasts
At the time of writing, the price of Ethereum had risen over 7% to $4,684. Meanwhile, trading volumes surged by nearly 40%. The strengthening of price growth is also supported by the formation of a golden cross on the chart. However, the success of the price depends on trading volume dynamics and the continuation of the altcoin season.
While Ethereum shows several positive factors for price increase, the introduced sell signals and market instability carry risks of correction. Investors should closely monitor price dynamics and trading volumes.
