---
title: "Can Ethereum Maintain Momentum? Key Levels To Watch"
url: https://diffcoin.com/can-ethereum-maintain-momentum-key-levels-to-watch/
description: "Ethereum, the world's second-largest cryptocurrency, has been on a rollercoaster ride lately, dipping below the psychologically important $3,000 threshold"
published: 2024-05-12
updated: 2024-05-12
author: "Mila"
site: "Diffcoin"
---

# Can Ethereum Maintain Momentum? Key Levels To Watch

Ethereum, the world’s second-largest cryptocurrency, has been on a rollercoaster ride lately, dipping below the psychologically important $3,000 threshold only to claw its way back, Ethereum’s price action has been a confusing mix of bullish and bearish signals.

## **Bullish Whispers: New Investors And Short-Term Spikes**

A glimmer of hope emerged for Ethereum bulls with a recent surge in new addresses on the network. According to Glassnode data, the number of new Ethereum addresses has skyrocketed, surpassing 160,000 – a stark contrast to the lows of under 100,000 witnessed in January.

This influx of new users suggests growing interest and potential investment in Ethereum, even amidst its recent struggles.

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Source: Glassnode
```

Furthermore, technical indicators on the 4-hour chart hint at a possible short-term upswing. Analysts at NewsBTC point towards increased volatility, signified by the widening Bollinger Bands, which could pave the way for a temporary price hike. This strategic move by the market might be aimed at luring in buyers before the prevailing downtrend resumes.

## **Bearish Shadow Looms: Market Sentiment And Technical Trends**

However, the jubilation may be short-lived. The overall market sentiment surrounding cryptocurrencies remains decidedly negative, a trend persisting since the much-anticipated Bitcoin halving event in April failed to deliver a significant market surge, data from Santiment shows, suggesting investor caution despite the brief price recovery.

> 😒 The sentiment toward [#crypto](https://twitter.com/hashtag/crypto?src=hash&ref_src=twsrc%5Etfw)‘s top cap assets is still rather negative. This has been the case since the April 19th [$BTC](https://twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw) [#halving](https://twitter.com/hashtag/halving?src=hash&ref_src=twsrc%5Etfw) didn’t immediately result in rising market caps throughout [#cryptocurrency](https://twitter.com/hashtag/cryptocurrency?src=hash&ref_src=twsrc%5Etfw). With uncertainty high, small wallets dropping out of the sector may be… [pic.twitter.com/7FXYheGnX0](https://t.co/7FXYheGnX0)
> 
> — Santiment (@santimentfeed) [May 9, 2024](https://twitter.com/santimentfeed/status/1788600960090341440?ref_src=twsrc%5Etfw)

Adding fuel to the bearish fire, Ethereum’s daily chart continues to paint a hazy picture. Technical analysts point towards sustained breaks in price structure to the downside, indicating a potential continuation of the downtrend. Even the Relative Strength Index (RSI) sits at a low 40, further reinforcing the bearish sentiment gripping the market.

```
Ethereum is now trading at $2,904. Chart: TradingView
```

### **Chart Patterns And Breakout Potential: A Neutral Take**

Amidst the conflicting signals, seasoned trader Peter Brandt offered a more neutral perspective. Analyzing Ethereum’s price chart, which he described as “intriguing,” Brandt identified two potential technical patterns: a flag and a channel.

> ETH [$ETH](https://twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw) is becoming a very intriguing chart to me 
> The pattern is too long to be considered a flag, but a channel is the most likely labeling 
> I could go either way with this chart [pic.twitter.com/EeSa7SyAmA](https://t.co/EeSa7SyAmA)
> 
> — Peter Brandt (@PeterLBrandt) [May 9, 2024](https://twitter.com/PeterLBrandt/status/1788559981006193027?ref_src=twsrc%5Etfw)

While a flag typically signifies a continuation of the current trend after a brief pause, a channel allows for price movement within a defined range. The ambiguity surrounding the exact pattern suggests a potential breakout in either direction, leaving Ethereum’s immediate future uncertain.

### **Ethereum: The Road Ahead**

With conflicting technical signals and a market shrouded in negativity, Ethereum’s future trajectory remains shrouded in uncertainty. While short-term price spikes are a possibility, the long-term trend appears to be leaning bearish.

The coming weeks will be crucial for Ethereum, as it navigates these turbulent waters and attempts to chart a clear course in the coming weeks or months.

*Featured image from Pexels, chart from TradingView*

[Source link](https://bitcoinist.com/can-ethereum-maintain-momentum-key-levels-to-watch/)