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Ethereum preparing for the next move as volume decreases

Ethereum (ETH) has spent the weekend consolidating and preparing for the next move after it couldn’t break the $1,300 level. Where will Ethereum go next?

The second-largest cryptocurrency by market cap spent the weekend consolidating and trading sideways after it failed to break the $1,300 mark. The sideways trading came after three days of almost continuous price rise, which started at slightly below $1,000.

Ethereum’s overall outlook is very bullish, which its current “decoupling” from Bitcoin confirms. Looking at the weekly performance, ETH has posted gains of 7.88%, outperforming BTC’s loss of 3.36%. On the other hand, XRP managed to lose 9.23% in the same period.

At the time of writing, Ether is trading for $1,220, which represents a 67.17% gain when compared to its previous month’s value.

ETH/USD

Taking a look at the daily chart, Ethereum’s price has been a bit shaky in the past days, but the cryptocurrency managed to stay above the $1,000 level and push itself back up near its all-time high levels. Ethereum is currently outperforming Bitcoin, which is in a short-term downtrend.

Due to its descending volume and relatively high RSI value, analysts predict that Ether’s price will most likely move down and retest the $1,000 level, especially if Bitcoin’s price continues moving towards the downside.

Ether will, depending on if it breaks its immediate support ($1,103) level or resistance ($1350) level, push to the downside or upside with (most likely) great force and high volume.

ETH/USD daily price chart. Source: TradingView

The technical overview shows Ether’s daily RSI chart stepping out of and hovering just below the overbought area, with its value currently sitting at 65.73.

ETH/USD 1-hour chart. Source: TradingView

Looking at the hourly time-frame, we can see Ether’s price rise that started on 13 Janurary, and ended on 16 January. This move has increased Ether’s price by $300. Its inability to break the $1,300 level has triggered a slight volume decrease (which was already prominent on the daily chart) and a period of sideways movement. Traders are expecting Ethereum’s price to move very soon.

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