The price of Ethereum (ETH) reached $1,439 on January 12 but has seen a slight pullback since then. Despite this, the cryptocurrency has held above the $1,400 support level in the last 24 hours. The bullish momentum is currently facing rejection at the $1,440 resistance zone. However, long-term analysis suggests a bullish trend for Ethereum. Since January 4, the altcoin has been posting higher highs and higher lows. If the price breaks above the current resistance level, Ethereum could reach a high of $1,475 and potentially even surpass its historical highs of $1,600 and $1,678.
While the bullish scenario seems plausible, Ethereum is currently trading in the overbought zone, which could lead to a price correction. If the bears break below the $1,300 support level, Ethereum could continue to fall until it reaches its old range-bound zone. Technical indicators for Ethereum show that the cryptocurrency is in an overbought position, with the Relative Strength Index at the 75 level. If the price remains above the moving average lines, Ether is likely to continue rising. However, the daily stochastic indicator is above the level of 80, indicating that Ethereum is trading in the overbought area.
Key resistance levels for Ethereum are $2,000 and $2,500, while key support levels are $1,500 and $1,000. The next direction for Ethereum will depend on whether the price can break the resistance level of $1,440. If it does, the uptrend will likely continue. However, if the price falls below the moving average lines on the 4-chart, Ethereum could retreat back to its previous range-bound zone. It’s important to note that this analysis and forecast are the personal opinions of the author and should not be considered as financial advice. Readers should conduct their own research before investing in cryptocurrency.
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