In addition to Bitcoin, the The Ethereum price has actually been able to reclaim $3,000which rose faster than expected over the weekend. This resulted in a daily increase of more than 6% on Sunday, as sentiment started to turn positive again. However, this move hasn’t completely dispelled bearish expectations surrounding the cryptocurrency, especially as one crypto analyst points out that the digital asset has now effectively reached an overbought level.
Ethereum in dangerous territory
In a TradingView post, crypto analyst SignalProvider says marked that Ethereum has now reached an overbought level, something that is bearish for the price. As the analyst explained, the trend is currently bearish based on the ETheruem-Hour timeframe as the seven-period RSI shows that the digital assets are now at the oversold level.
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This is because the Ethereum price continues to trade above $3,100, which the analyst calls a solid horizontal structure. However, this structure did not hold as strongly as expected, leading to weakness in the market. As a result, the crypto analyst explains that this could lead to a price drop.
If the decline goes as expected with the overbought levels, the analyst’s first target is $3,028. This could then serve as a support level that could begin the next uptrend. However, there is a possibility that this won’t happen anytime soon, like prices reach overbought levels may take time to play out.
ETH price is not entirely bearish
While entering overbought levels remains a bearish signal for Ethereum price, another analyst has done just that presented a possible bullish path for the cryptocurrency from here. This lies in the ability of bulls to completely break out of the $3,100 level.
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As crypto analyst TheSignalyst explains, the lower limit of the channel has acted as support for the Ethereum price above $3,000. If this channel holds, the bullish trend will remain intact. “From a structural perspective, ETH remains bullish and trades neatly within a flat rising channel,” the post said.
When the breakout is complete, the price could rise to $3,600, which is the top of the market. current ascending channel. But TheSignalyst explains that until this breakout occurs, Ethereum investors should expect more sideways price movements as the price continues to rise.
Featured image of Dall.E, chart from TradingView.com