• Ethereum’s price has been on a steady rise, breaking through the $1300 resistance level.
• A short-term correction appears to be imminent, as the RSI indicator has been in overbought territory for a few days.
• If a correction does take place, the 200-day moving average around $1400 and the 50-day moving average around $1300 could act as support points.
The Ethereum (ETH) price has been on a steady incline as of late, with the cryptocurrency breaking through the $1300 resistance level. This surge in value has been largely driven by the recent institutional investment into ETH and the increased demand for the asset. Despite this positive price action, some signs are pointing to a potential short-term correction in the near future.
The daily chart for ETH shows that the RSI indicator has been in overbought territory for a few days, suggesting that a correction is in the cards. If a pullback does take place, the 200-day moving average located around $1400 and the 50-day moving average located around $1300 could act as support points.
In terms of resistance points, the $1800 level could prove to be a challenge in the short-term. Moving upwards from there, the next key area of resistance could be found at the $2000 level. This area has been a major psychological barrier for Ethereum in the past and could be a tough nut to crack.
On the macro level, Ethereum continues to benefit from the increasing demand for decentralized finance (DeFi) protocols. This demand has led to an influx of capital into the Ethereum network, which has in turn caused the price of ETH to rise. Additionally, the launch of Ethereum 2.0 is also expected to bring in more investors, further driving up the price of the digital asset.
In conclusion, Ethereum appears to be on the cusp of a short-term correction. However, on a larger time frame, the asset continues to remain bullish, with the $1800 and $2000 levels being the main areas of resistance. With the launch of Ethereum 2.0 and the increasing demand for DeFi protocols, ETH could continue to experience positive price action in the long-term.