Ethereum (ETH) is showing both strength and caution following a significant 49% surge in the past week, bringing its market cap back above $300 billion. While the EMA indicators remain positive, the momentum indicators are signaling a potential cool-off.

The ADX has decreased from 61 to 47.99, and the RSI has dropped from 86 to 63, indicating that the upward trend might be losing momentum. However, there is still buying activity, and a breakthrough of key resistance levels could propel ETH above $3,000.

The DMI signals for ETH suggest a slowing rally and increasing bearish pressure. The ADX decline to 47.99 indicates weakening trend strength. The +DI line falling from 47.96 to 27.2 shows diminished bullish momentum, while the -DI line rising to 13.97 suggests growing bearish pressure. The narrowing gap between +DI and -DI could lead to a short-term pullback or consolidation phase, although recent movements indicate buyers are trying to maintain control.

In terms of the RSI, Ethereum has cooled off from the overbought territory, dropping from 86 to 63. Despite this decline, a bounce from 54 indicates renewed short-term buying interest. The RSI value of 63 shows a retreat from overbought levels while still maintaining a bullish stance, potentially setting the stage for another upward move if buying activity persists.

With a 43.5% increase in price over the week, Ethereum has its sights set on breaking the $2,617 resistance level to reach $2,855 and possibly $3,000. However, failure to surpass the resistance could lead to support tests at $2,320, $1,938, and possibly $1,736 in case of a stronger bearish trend.