Ethereum (ETH) has demonstrated impressive strength over the past 24 hours, with its price surging by 9%. This recent upward momentum is being closely scrutinized by analysts, particularly as key technical indicators suggest the cryptocurrency is at a pivotal point.

A clear bullish trend appears to be building from a significant rise in its Relative Strength Index (RSI) to a strengthening Directional Movement Index (DMI). However, ETH now faces critical resistance levels that determine whether it can sustain this rally or if a correction is on the horizon.

Ethereum’s Directional Movement Index (DMI) reveals a notable surge in trend strength, with the Average Directional Index (ADX) rising to 24.77 from 11.58 just a day ago.

The ADX measures trend strength regardless of direction, with values below 20 typically indicating a weak or non-trending market, and values above 25 pointing to a strong trend.

Ethereum is now approaching that key threshold, suggesting that momentum is building and a clearer directional move may be developing. Analysts recently highlighted four reasons why Ethereum may be on the verge of a breakout.

Supporting this, the +DI (Positive Directional Indicator) has jumped from 18.17 to 44.07, signaling a strong bullish push, while the -DI (Negative Directional Indicator) has dropped from 23.92 to 12, showing weakening bearish pressure.

This widening gap between +DI and -DI implies that buyers are decisively gaining control.

If this trend continues and ADX crosses above 25, Ethereum could enter a stronger upward phase with increasing bullish conviction.

Ethereum’s Relative Strength Index (RSI) has significantly increased, climbing from 42.66 yesterday to 76.82.

This marks the first time ETH’s RSI has exceeded the 70 threshold in nearly a month, with the last instance occurring on May 11.

Such a rapid shift in the RSI suggests a notable change in Ethereum’s market momentum, indicating a strong influx of buying pressure over the past 24 hours.

The Relative Strength Index (RSI) is a momentum oscillator. Technical analysts use it to measure the speed and change of price movements. It moves between zero and 100. Traders consider an asset “overbought” when its RSI exceeds 70. This suggests its price might be unsustainably high, indicating a coming correction.

Conversely, an RSI below 30 points to “oversold” conditions. This implies the asset might be undervalued and ready for an upward rebound. So, ETH’s current RSI of 76.82 puts it squarely in overbought territory.

This high reading often signals that the asset has experienced a rapid price increase and that buying interest may be reaching an extreme, potentially leading to a pullback or consolidation in the near term.

Ethereum (ETH) is nearing a key resistance at $2,790. Breaking this could fuel a strong uptrend, and ETH might then test $3,442. Its Exponential Moving Average (EMA) lines support this.

They show that a bullish trend is building. EMAs prioritize recent price data. Their bullish setup suggests growing short-term momentum. This provides a positive technical outlook.

Ethereum could see a notable drop if the support at $2,462 is tested and lost. It might fall to $2,326. A strong downtrend could push ETH even lower. It could reach $1,938, falling below $2,000.

This would be its first time under $2,000 since early May. Such a drop would signal a significant shift from bullish to bearish sentiment.