The price of Ethereum has risen sharply since Bitcoin crossed the $20,000 price mark. Over the last 24 hours, ETH has moved slightly lower on the chart, reflecting the consolidated price action. Last week helped the price of Ethereum rise by 6%.
The coin finally broke through the consolidation at the $1,500 price level and has been moving north ever since. The technical view of the coin has pointed to a continued bullishness on the chart. Accumulation has increased since Ethereum breached the $1,500 price level.
The price reversal opportunity cannot be beat, because ETH is overbought and overvalued. Currently, Ethereum has secured $1,600 as a support level. The next price correction can help traders with buying opportunities.
A price correction may not occur during the live trading session as demand for the coin remains quite high on the chart. The price of Ethereum may continue to rise before the coin pulls back. Ethereum’s market capitalization increased, which also indicates that buying sentiment remains high.
Ethereum Price Analysis: Daily Chart
ETH is changing hands at $1,620 at the time of writing. The immediate resistance for the coin stands at $1,690; it even corresponds to the 50% Fibonacci retracement level. A move above $1,690 will help Ethereum touch the $1,700 price mark.
The $1,700 price mark is important, as touching or breaching this mark could mean continued bullish momentum for the crypto.
ETH may rise to $2,000 if the $1,700 price mark is crossed. This area will be a profitable area for traders. On the flip side, if the bullish momentum declines, the first fall will be at $1,600 and then at $1,520. The amount of Ethereum traded in the last session was red, indicating a downtick in buying.
Technical Analysis
Altcoins are still in the overbought zone, which also means that Ethereum broke the multi-month record in terms of accumulation. The Relative Strength Index is parked a little below the 80 mark, which still indicates buying power and bullishness.
If demand stays at this level, the bullish momentum will not disappear again. ETH is also trading above the 20-Simple Moving Average line, indicating that buyers are driving price momentum.
Conversely, the 200-SMA line crosses the 20-SMA line, which indicates that the coin may be headed for a southward price movement.
As accumulation remains at a record high for coins, the possibility of a price pullback remains for altcoins. The Awesome Oscillator, which shows the price direction, displays a red histogram, which means this is a sell signal for altcoins.
Sell signals can be accompanied by a fall in price. Ethereum may briefly drop in price before resuming its upward trend.
The Directional Movement Index is still positive, as the +DI (blue) line is above the -DI (orange) line. The Average Directional Index (red) shot past 40, which suggests that the price direction will gain more strength, which will push ETH to break the price ceiling near $1,700.
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