Ethereum Quickly Reclaims $3,000, But Will It Maintain Its Short-Term Bullish Trend?

The second largest token, Ethereum, has been closely tracking the largest cryptocurrency as BTC price recovery resumed and ETH rally began. The token has regained crucial support at around $3,100 after hitting a low around $2,800. While market participants remain optimistic about the cryptocurrency, ETH price appears to be preparing to trap the bulls at higher levels.

ETH price is known for slow but steady trading without experiencing massive price fluctuations. Therefore, traders continue to remain very bullish on the token as it has higher chances of reaching new highs in the short term. With ETH price now in a short-term downtrend, it could now turn bullish to target higher and trap the bulls.

Ethereum price traded in a descending parallel channel shortly after rejecting from yearly highs. This has also created huge downside opportunities as sales volume has accumulated heavily. However, there is still a slim chance of an uptrend continuation due to the formation of an inverted hammer. An inverted red hammer is usually considered a bullish indicator as buyers try to put more pressure on the market.

On the other hand, the further course of action for the ETH price remains unclear as the DMI is unclear. All levels have crashed including ADX which is heading towards lower support while +Di and -Di are on the verge of a bearish crossover. Trading volumes have also turned in a bearish direction, suggesting that more outflows may be ahead before a significant recovery occurs.

However, looking more broadly, Ethereum price could maintain its uptrend and reach the upper resistance above $3,500. Here the bullish strength could weaken, allowing the bears to intensify their actions. This could push ETH price back towards the upper resistance and if bulls show strength, a breakout could be imminent.