Ethereum's recent recovery has been marked by a fragile balance between technical and macro-driven factors. On one hand, the cryptocurrency is trading above key moving averages on shorter timeframes, indicating a short-term bullish bias. On the other hand, its long-term trend remains bearish, with price still below the 200-day exponential moving average (EMA).
Volatility has been elevated in recent days, but not extreme. This means that traders need to be cautious and adjust their position sizing accordingly.
The market-wide sentiment is in extreme fear, which could lead to sharp price movements. As a result, it's essential for traders to exercise discipline and stick to their strategy, rather than chasing short-term gains.