The Ethereum price has been propelling itself considerably ever since Bitcoin crossed the $20,000 price mark. Over the last 24 hours, ETH has slightly moved down on its chart, depicting consolidated price action. Last week helped the Ethereum price move up by 6%.
The coin finally broke past its consolidation at the $1,500 price level and has been moving north ever since. The technical outlook of the coin has pointed towards continued bullishness on the chart. Accumulation has increased substantially ever since Ethereum breached the $1,500 price level.
The chance of a price reversal cannot be ruled out just yet, as ETH was overbought and overvalued. Currently, Ethereum has secured $1,600 as the support level. The next price correction could help traders with buying opportunities.
A price correction might not occur over the immediate trading sessions as demand for the coin remains quite high on the chart. Ethereum’s price might continue on the upside before the coin retraces. The market capitalization of Ethereum increased, which also reflected that the buying sentiment remained high.
Ethereum Price Analysis: One-Day Chart
ETH was exchanging hands at $1,620 at the time of writing. Immediate resistance for the coin stood 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 crucial, as touching or breaching this mark could mean continued bullish momentum for the crypto.
ETH could even soar to $2,000 if the $1,700 price mark is crossed. This region will act as a profit-take region for traders. On the flip side, if the bullish momentum slows down, the first fall would be at $1,600 and then at $1,520. The amount of Ethereum traded in the last session was red, signifying a downtick in buying.
The altcoin was still in the overbought zone, which also means that Ethereum broke a multi-month record in terms of accumulation. The Relative Strength Index was parked a little below the 80-mark, which still signified heavy buying strength and bullishness.
If demand stays at this level, bullish momentum will not fade out anytime soon. ETH was also trading above the 20-Simple Moving Average line, indicating that buyers were driving the price momentum.
On the contrary, the 200-SMA line crossed the 20-SMA line, which implies that the coin might be headed for southbound price movement.
As accumulation has remained at a record high for the coin, chances of a price pullback still remain for the altcoin. The Awesome Oscillator, which signifies price direction, displayed red histograms, which meant that these were sell signals for the altcoin.
Sell signals can be accompanied by a fall in price. Ethereum may briefly fall in price before resuming its upward trend.
The Directional Movement Index was still positive, as the +DI line (blue) was above the -DI line (orange). The Average Directional Index (red) shot past 40, which suggested that price direction would gain further strength, which will push ETH to break past its nearest price ceiling of $1,700.
Featured Image From UnSplash, Charts From TradingView.com
Credit: Source link