At the time of publishing, Ethereum was faced with a degree of resistance that could easily be invalidated if the purchase pressure persisted.
Ethereum 1-week chart
As previously mentioned, Ethereum invalidated a couple of bearish signals, just like Bitcoin did. This was mainly due to the buying pressure from institutions, coupled with sell-side liquidity drying up and retail FOMO. This seemed to be the perfect concoction for a parabolic price surge.
Ethereum was sticking to the ascending channel pattern on the weekly timeframe and was expected to hit a ceiling at $624 and $655. However, the buying pressure and FOMO contributed to the price shattering through this glass ceiling and surging to $747.
What seemed even more interesting was that the press time level was just below the 0.5-Fibonacci level of the trend-based Fibonacci tool extending from the highs of December 2017 to the bottom seen in December 2018, and finally back to the latest high of $756. Thus, the 0.5-level at $750 will be a formidable resistance for the cryptocurrency’s price in the near-term.
On the question of the cryptocurrency’s indicators, the RSI has been oversold for almost 49 days on the weekly timeframe, while the OBV showed a constant surge in volume.
Finally, while the Stochastic RSI [adjusted] was heading into the overbought zone, the Stochastic RSI attempted to get out of the overbought zone.
If bitcoin’s purchasing pressure is diminished, we’ll see a domino effect that will lead Ethereum’s price to decline. So, any predictions for the price of Ethereum can better be characterised as “cautiously optimistic.” Also, because Ethereum is closely trailing Bitcoin, it may also face a correction soon, and when it comes to play, we may see big long liquidations. The price will decline by 20 percent and fall below $600.
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
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