Ethereum Price Rising, But Short-Term Correction Could be On Its Way
• Ethereum’s price has been steadily increasing after breaking above the $1300 resistance level.
• There are signs that a short-term correction could be on its way as the RSI indicator has been in overbought conditions.
• If a correction does occur, the 200-day moving average located around the $1400 mark could be the first support level.
Ethereum’s price has been steadily increasing over the past few months, with the coin breaking out of its $1300 resistance level earlier this month. The coin is currently trading at around $1,600 and is showing no signs of slowing down. However, some analysts are warning that a short-term correction could be on its way.
The daily chart of Ethereum is showing that the coin has been constantly climbing higher and could reach the $1800 level soon. However, the RSI indicator has been in overbought conditions over the past few days, suggesting that a short-term pullback is quite probable. In case of a correction, the 200-day moving average located around the $1400 mark could be the first turning point, with the 50-day moving average located around the $1300 mark providing additional support.
The 4-hour chart shows that the price has been forming a rising wedge pattern, which is usually seen as a bearish reversal pattern. The price is also trading below the 50-EMA, suggesting that the bears could take control of the market in the coming days. If the price falls below the $1400 mark, it could lead to a deeper correction.
The weekly chart is also showing that the price is trading in an overbought zone, with the RSI indicator staying above the 70 mark for the past few weeks. Furthermore, the MACD indicator is also close to generating a bearish crossover, which could indicate the start of a corrective move.
Overall, Ethereum’s price is showing signs of a short-term correction. If the price falls below the $1400 mark, it could lead to a deeper correction. Therefore, it is important for traders to be cautious and wait for the market to confirm the direction before making any decisions.