Top altcoin ETH has surpassed the market decline in the past 24 hours, recording a slight increase of around 1%. At the time of writing, this coin is trading at $1,842.
This occurs as an important momentum indicator – the Buy Sell ratio of buyers – rises to its highest level in 30 days, indicating new price increase pressure in the futures contract market of this asset.
Traders Expect ETH Price Increase as Buying Pressure Builds
According to CryptoQuant, the Buy-Sell ratio of ETH buyers is currently at 1.08, marking the highest value since early April.
Ethereum Buy Sell Ratio. Source: CryptoQuantThis index measures the ratio between buy and sell volumes in the ETH Futures Contract market. A value above 1 indicates more traders are buying ETH contracts than selling, while a value below 1 shows selling pressure dominates.
At 1.08, the Buy-Sell ratio of ETH buyers clearly leans towards buyers, reflecting increasing trader confidence that the price may continue to rise.
Moreover, the Relative Strength Index (RSI) of this altcoin continues to trend upward, supporting this price increase story. At the time of writing, it is at 58.39 and continues to rise.
Ethereum RSI. Source: TradingViewThe RSI index measures overbought and oversold market conditions of an asset. It fluctuates from 0 to 100, with values above 70 indicating the asset is overbought and may decrease. Conversely, values below 30 signal the asset is oversold and may recover.
ETH's RSI index confirms a strong price increase trend for this altcoin, reinforcing the view that it may be ready for further growth.
ETH Consolidates Strength Above Short-Term Support
At the current price, ETH is above the 20-day Exponential Moving Average (EMA), forming a dynamic support below its price at $1,770.
The 20-day EMA measures the medium average price of an asset over the most recent 20 trading days, prioritizing recent prices. When an asset trades above this important moving average, it signals short-term price momentum. This indicates recent prices are trending higher compared to the medium over the past 20 days. Traders often view this as a sign of potential strength or an early upward trend.
Therefore, ETH may maintain its upward momentum towards $2,027 if buying pressure increases.
Ethereum Price Analysis. Source: TradingViewOn the other hand, if buying activity decreases, the coin may lose its recent profits, break below the 20-day EMA, and drop to $1,385.
