Despite Ethereum’s Great Month, It Could Fall Sharply Soon

Ethereum (ETH) has been gaining ground this week with a 8.93% increase. However, that bullish trend looks to be coming to a close.

ETH is up 4.06% today to 2,519.18 and gaining rapidly. It looked like the coin was slowing down, but early morning sales have seen the bulls grab this coin by the horns and run with it. How much longer can it keep increasing, though in a market that is showing signs of health and growth but not substantially so?

Heading into the weekend, ETH is experiencing heavy volume, which is up 26% over the last 24 hours. This could be a last push before the inevitable decline as some suspect.

What Will Hold ETH Back?

The biggest factor that could hinder ETH’s climb is its potential announcement as a security. Though some industry insiders have estimated a break to the $3,000 level, this news could hurt its long-term growth. A few technical indicators are placing doubt on Ethereum’s growth potential.

There is an incoming Dencun update that has likely helped ETH grow to its current level, between the range of $2,106 and $2,633. That update is supposed to help with stability in the network and improve scalability.

Promethium is expected to announce custody services for Ethereum and see ETH as a security, which could hurt the coin’s viability and future.

ETH’s price pulled back a bit earlier in the week but has overall shown a lot of steady, strong growth. Technical data shows a coin that may not be as strong as it looks, though. There could be a bearish divergence soon as interest wanes after the initial bull run.

If the bulls keep control of Ethereum, they could take it past $2,600 quickly and closer to $3,000. We expect the coin will drop below $2,500 over the weekend, though, and it may have a tough time coming out of the new week, with much of the activity diminishing as we head into Saturday.