Ethereum price has extended its newfound upside momentum, gaining 3.7% on the daily chart at the time of writing to trade at $2,600 to stay on course to record a third successive weekly gain. The crypto coin has gained 42% in the last week, outperforming Bitcoin’s 9.9% gain and a multitude of altcoins and meme coins in that time frame.
The spotlight on ETH price has seen it attract a strong positive sentiment that will likely continue supplying tailwinds to the coin. Ethereum’s open interest contracts grew by 3.6% in the last 24 hours, hitting $13.62 billion. That affirms the bullish appetite for the coin, which adds credence to the likely near-term gains.
Pressure Mounting on Ethereum Price
However, on the downside, Ethereum price will likely be under pressure from falling trade volumes. According to CoinMarketCap data, Ether’s trading volume declined by 10.2% in the last 24 hours. That shows that the rising prices have seen investors reduce their uptake of the coin.
In addition, DeFiLlama reports that Ethereum chain’s Total Value Locked (TVL) declined by 1.7% in that time frame. That translates to reduced utility for ETH, which adds downward pressure on the price. Looking ahead, the coin will need to stay above the psychological $2,500 support to avoid a steeper downside.
Ethereum Price Prediction
Ethereum price pivots at $2,494 and action above that level favours the buyers to stay in control. The upside momentum will likely meet initial resistance at $2,620. However, an extended control by the buyers will breach that mark and could send the ETHUSD pair higher to test $2,700.
On the other hand, the sellers will take control if the price breaks below $2,494. That will likely see the coin find the first support at $2,401. The upside narrative will be invalid below that mark. In addition, that action could strengthen the downward momentum and send the price lower, testing $2,245.
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