Ethereum (ETH) has skyrocketed past $1,000, quickly nearing its Jan 2018 all-time highs. Will bulls push the price beyond this psychological level?
The second-largest cryptocurrency by market cap had suddenly spiked in price, reaching as high as $1,169 before the bulls reached exhaustion. ETH is now fighting to stay above $1,000, which will decide its short-term future.
Ethereum’s overall outlook is extremely bullish from both technical and fundamental perspectives. Taking a look at the weekly performance, ETH has posted gains of 39.27%, while BTC gained 11.50%. On the other hand, XRP managed to lose 13.73% in the same period.
At the time of writing, Ether is trading for $1,040, which represents a 78.81% gain when compared to its previous month’s value.
Taking a look at the daily chart, Ethereum was trading regularly and slowly tackled its resistance levels until 3 January, when it exploded to the upside. The move brought its price to $1,169,very close to the all-time high level of $1,420 from 8 January 2018. However, ETH won’t have a clear path to the upside, as various levels will oppose its rise, mainly $1,170 and $1,292.
Ether will, depending on if it ends up above or below $1,000, prepare for a new move to the upside or retrace and try to find a place to consolidate.
ETH/USD daily price chart. Source: TradingView
The technical overview shows Ether’s daily RSI chart being well in the overbought area, with the value deep into the 80’s. While some might consider this as a telltale sign of overbought trading, cryptocurrencies often ignored this indicator. For this reason, the volume has to be looked at in addition to the RSI, and in this case needs to start heading towards its previous levels.
ETH/USD 1-hour chart. Source: TradingView
Looking at the hourly time-frame, we can see Ether struggling to keep its price above $1,000. The second-largest cryptocurrency by market cap has already posted a 15-minute candle below this level, but the ultimate position of the cryptocurrency will most likely be decided by the hourly candle that ends up above or below the zone between $1,000 and $1,020.