• Ethereum’s price has been on the rise, breaking above the $1300 resistance level.
• Technical analysis shows that a short-term correction is quite possible as the RSI indicator is in overbought conditions.
• The 200-day moving average located around the $1400 mark could be the first turning point for a potential pullback.
Ethereum has been on an impressive bull run for the past few weeks, with its price rising from around $1300 to nearly $1800 in a short period of time. This surge in price has been driven by increased demand from institutional investors, as well as the recent surge in popularity of DeFi projects. While the overall trend is still very bullish, recent technical analysis shows that at least a short-term correction is quite possible.
The daily chart for Ethereum shows that the price has been consistently climbing higher, and could soon reach the $1800 level. However, the RSI indicator has been in overbought conditions for the past few days, suggesting that a pullback is imminent. The 200-day moving average located around the $1400 mark could be the first point of support in case of a correction. Furthermore, the 50-day moving average located around the $1300 mark could act as an additional point of support.
In addition to technical indicators, fundamentals also suggest that a correction is likely. Ethereum’s network has been struggling with scalability issues due to the recent surge in usage, and the lack of a scaling solution could lead to a correction in the near future. Furthermore, the recent surge in the price of Ethereum has caused miners to start selling their rewards in order to cover their costs, which could also lead to a price correction.
Overall, Ethereum’s trend is still very bullish, and it could easily break past the $1800 level in the near future. However, a short-term correction is quite possible due to technical and fundamental factors, and investors should be prepared for a potential pullback. The 200-day moving average located around the $1400 mark could act as the first point of support in case of a correction, with the 50-day moving average located around the $1300 mark providing additional support.