Ethereum price has been rising for quite some time after breaking the $1,300 resistance level. Positive trends remain on the higher timeframes, but some signs suggest that at least a short-term correction is quite likely.
On the daily timeframe, the price is constantly rising and could hit the $1800 level soon. However, a short-term pullback seems imminent as the RSI indicator has been in an overbought state for the past few days.
In case of a correction, the 200-day MA near $1400 could be the first turning point, and the 50-day MA near $1300 could be the second major support. Still, the price may test the $1800 levels first before a pullback or reversal.
A bullish breakout from the $1800 resistance level on the first trial is unlikely, but ETH can move aggressively towards the significant $2000 level.
Overall, this scenario seems unlikely in the short term and a far more likely pullback.
4 hour chart
Looking at the 4-hour timeframe, the price has reached the $1650 resistance area but is struggling to break out of it at the moment.
The RSI indicator shows some worrying signs on this timeframe as a clear bearish divergence has formed between the last two highs, with the RSI showing lower highs. This classic reversal pattern could indicate a possible rejection from the $1800 levels in the short term.
From classical price action considerations, the $1350 support area is likely to hold in the event of a significant correction, although any valid breakout above $1800 would invalidate this scenario. seems unlikely at this time.
ETH open interest
Ethereum’s price has risen in recent weeks after a tough consolidation above $1,000. Meanwhile, the decline in the FX reserves indicator has stalled after its biggest drop since the FTX collapse.
The recent rise may be the result of a significant reduction in exchange reserves. This is because many investors are withdrawing coins from exchanges and keeping them in their personal wallets, fearing that what happened to FTX could happen to preferred exchanges. The ensuing supply shock could therefore be one of the key factors leading to the current price rise.
However, the exchange reserve indicator has now stopped falling, and this is because while many holders are withdrawing ETH, the price is rising in relative terms, as other holders are depositing their coins. Shows the fact that you are selling with marginal profit or loss.
In conclusion, this indicator should be monitored closely in the short term as reserves build-up could lead to a surge in selling pressure and lead to a bearish reversal.
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cryptocurrency chart By TradingView.