Ethereum Closes Near Its Next Profit Take Region As Bullish Momentum Continues

- Advertisement -


Ethereum itself has been rising significantly in price since bitcoin crossed the $20,000 price mark. Over the past 24 hours, ETH has moved slightly down on its charts, showing consolidated price action. Last week, the price of Ethereum increased by 6%.

- Advertisement -

The coin eventually overcame its consolidation at the $1,500 price level and has been trending north ever since. The technical outlook of the coin has pointed to a sustained bullish move on the charts. The accumulation has increased significantly since Ethereum crossed the $1,500 price level.

- Advertisement -

The possibility of a price reversal cannot be ruled out now, as ETH was overbought and overvalued. Currently, Ethereum has taken $1,600 as a support level. The next price correction may provide buying opportunities for the traders.

Price correction may not happen in the immediate trading sessions as the demand for the coin is quite high on the charts. Ethereum price is likely to continue its upward move before the coin recovers. Ethereum market capitalization increased, which also shows that buying sentiment remains high.

Ethereum Price Analysis: Intraday Chart

Ethereum
Ethereum was priced at $1,620 on the one-day chart. Source: ETHUSD on TradingView
- Advertisement -

At the time of writing ETH was exchanging hands at $1,620. The coin’s immediate resistance was $1,690; It also corresponds to the 50% Fibonacci retracement level. A move above $1,690 would help Ethereum touch the $1,700 price mark.

The $1,700 price mark is important, as touching or breaking this mark could mean continued bullish momentum for the crypto.

If the $1,700 price mark is overcome, ETH could even rise towards $2,000. This area will act as profit taking area for the traders. On the other hand, if the uptrend slows down, the first downside would be $1,600 and then $1,520. The Ethereum traded volume was red in the previous session, indicating a decrease in buying.

technical analysis

Ethereum
Ethereum was overbought on the one-day chart Source: ETHUSD on TradingView

The altcoin remained in the overbought zone, which also meant that Ethereum broke a multi-month record in terms of accumulation. The Relative Strength Index was slightly below the 80-mark, which still indicates heavy buying and bullishness.

If the demand remains at this level, the bullish momentum is not going to slow down anytime soon. ETH was also trading above the 20-simple moving average line, indicating that buyers were driving the price momentum.

Conversely, the 200-SMA line crossed the 20-SMA line, which means that the coin could be headed for a southward price movement.

Ethereum
Ethereum displayed a sell signal on the one-day chart Source: ETHUSD on TradingView

As accumulation for the coin remains at a record high, the potential for a price drop still remains for the altcoin. The Awesome Oscillator, which depicts the price direction, displayed a red histogram, meaning these were sell signals for the altcoin.

A sell signal may accompany a drop in price. Ethereum may decline in price for a while before resuming its uptrend.

The Directional Movement Index was still positive, as the +DI line (blue) was above the -DI line (orange). The Average Directional Index (red) crossed 40, suggesting further strength in the price direction, which would lead ETH to break above its nearest price range of $1,700.

Featured images from Unsplash, charts from TradingView.com



Credit : newsbtc.com

- Advertisement -

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox