Bitcoin pumped again over the weekend and recorded a new all-time high above $60k. As BTC chased new targets, the largest altcoin Ethereum [ETH] also jumped higher on the price scale. The altcoin was seeing a successful rally before the sector saw a reversal at the time of publication.
ETH traded at $1,789 with a market capitalisation of $207.28 billion.
Ethereum 4-hour chart
The above map of Ethereum indicates an extremely volatile market. The valuation of the cryptocurrency was similar to the $2,000 resistance until it was traced down. At the time of publishing, the price of the digital commodity was marked by selling pressure, but it may also be part of the correction due to the unexpected hype.
The Bollinger Bands have diverged, showing high market uncertainty. When the rising price was obstructed by $1,895, the price started to fall. The 50 moving average was serving as a support while the signal line was moving over the candlesticks, noticing the growth of the bears.
The Relative Strength Index was 44, which was inside the equilibrium range. This meant that the sales pressure was rising on the market and that the consumers were unable to sustain the elevated price for the time being. Increased sales pressure and industry momentum could lead to a decline to $1,716.
Take profit: $1,681.13
Risk to Reward: 1.47
The above map of Ethereum indicates that the price of the digital currency may see a further fall. As it receded from $1,895, increasing sales pressure could drive the valuation to $1,716. The Bitcoin price has already seen a correction set in, which may exacerbate the decline on the ETH market.
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