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The price of Ethereum has increased tremendously since Bitcoin crossed the $20,000 price mark. Over the last 24 hours, ETH has moved slightly lower on its charts, reflecting consolidating price action. The past week helped Ethereum’s price rise by 6%.
The coin finally broke through consolidation at the $1,500 price level and has been moving north ever since. The coin’s technical outlook has pointed to a continued bullish trend on the charts. Accumulation has increased substantially since Ethereum broke through the $1,500 price level.
Opportunities for a price reversal cannot be ruled out just yet, as ETH is overbought and overvalued. Currently, Ethereum has secured $1,600 as a support level. Subsequent price corrections can help traders with buying opportunities.
Price corrections may not occur during live trading sessions as the demand for the coin remains quite high on the charts. Ethereum price may continue to rise before the coin retraces. Ethereum’s market cap is increasing, which also reflects that buying sentiment remains high.
Ethereum Price Analysis: One Day Chart
ETH is changing hands at $1,620 at the time of writing. Immediate resistance for the coin was $1,690; it even corresponds to the 50% Fibonacci retracement level. A move above $1,690 should help Ethereum touch $1,700.
The $1,700 price tag is critical, as touching or breaking this mark could mean continued bullish momentum for the crypto.
ETH could even jump up to $2,000 if the $1,700 price mark is surpassed. This region will act as a profit-taking area for traders. On the other hand, if the bullish momentum slows down, the first drop will be at $1,600 and then at $1,520. The amount of Ethereum traded in the last session is red, indicating decreased buying.
Technical Analysis
Altcoins are still in the overbought zone, which also means Ethereum is breaking multi-month records in terms of accumulation. The Relative Strength Index is parked slightly below the 80 mark, which still indicates high buying and bullish strength.
If demand holds at these levels, the bullish momentum won’t be fading anytime soon. ETH is also trading above the 20 Simple Moving Average line, indicating that buyers are driving the price momentum.
Conversely, the SMA 200 line intersects the SMA 20 line, implying that the coin may be heading south.
As accumulations remain at record highs for the coin, the possibility of price drops still exists for altcoins. The Awesome Oscillator, which signals price direction, displays a red histogram, meaning this is a sell signal for the altcoin.
A sell signal can be accompanied by a decrease in price. The price of Ethereum may drop briefly before continuing its upward trend.
Directional Movement Index is still positive, because the +DI line (blue) is above the -DI line (orange). The Average Directional Index (red) shot past 40, indicating that price direction will gain further strength, which will push ETH past its nearest price cap of $1,700.
Featured Image From UnSplash, Chart From TradingView.com
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