Ethereum Breaks the Main Moving Average...and the Bears Take Advantage of the Momentum

Ethereum (ETH) price briefly traded above the 20-day exponential moving average (EMA) during the May 15 trading session, indicating a temporary decline in selling pressure.

However, as the bullish pressure lost momentum, the bears began a downtrend, causing the altcoin's price to trade below this key moving average at press time.

Ethereum bulls haven't given up yet

When an asset is trading above its 20-day EMA, it is considered a bullish signal because it means its current price has risen above its average price over the last 20 days. Market participants interpret this as a move towards Accumulation of currencies.

ETH's short run above the 20-day EMA indicated that the bulls temporarily regained control of the market before losing it to the bears. Despite this, bullish sentiment is pervasive in the market.

At the time of writing, the weighted sentiment for the currency is 0.32. This metric measures the social sentiment surrounding the asset. When its value is positive like this, it indicates that the asset has a generally bullish outlook on social media.

Additionally, Elder-Ray Indicator readings for the coin show that it returns a positive value at the time of writing. This indicator measures the relationship between the power of buyers and sellers of ETH in the market.

When its value is positive, bullish power dominates the market. At the time of writing, ETH’s Elder-Ray Index is 46.46.

Learn more: Everything you need to know about Ethereum funds and altcoin season

ETH Price Prediction: Bears Won’t Stop Easily

Although the metrics assessed above indicate bullish activity in the ETH market, it is trivial to note that its price assessed on the daily chart is still within a descending triangle. This is generally considered a bearish signal.

A descending triangle forms when the price of an asset reaches a series of lower highs. When this happens, a certain price level forms support. In the case of ETH, this is the price of $2,864.

If the downward pressure builds and the coin erases its recent gains, it could face a price pullback below $3,000 to trade in the $2,800 price zone.

Learn more: Ethereum (ETH) Price Forecast for 2024, 2025, 2026, 2027

However, if this projection is invalidated and the coin breaks above the upper trendline of this triangle, it could trade above $3,100 in the near term.