Ethereum (ETH) is starting the new year with a strong rebound. The digital currency is once again in the spotlight, but the sudden rise also raises doubts among analysts about the sustainability of the recovery. What can we expect?
Ethereum price is rising
While ETH dipped below $2,800 in mid-December, the currency has now shown a strong recovery. In recent days, the Ethereum price rose by more than 6 percent and even reached a peak above $ 3,200 earlier today. It is the highest level since December 12.
This rise creates optimism among investors, but also warning sounds. According to analyst SignalProvider, Ethereum has technically overheated in the short term. Based on the Relative Strength Index (RSI), a well-known momentum indicator, on the hourly chart, he speaks of an oversold condition.
Ethereum analysis from SignalProvider – TradingView
The price is trading near a key resistance at $3,117, he writes on TradingView. According to him, a pullback towards the zone around $3,000 is likely, a level that may act as initial support.
He emphasizes that a high RSI value does not automatically mean that a price drop will follow soon, or that it will fall at all.
The RSI is a popular indicator in technical analysis that indicates whether a currency has risen or fallen too fast in a short period of time. A value above 70 indicates overbought (chance of correction), while a score below 30 means oversold (chance of recovery).
Major resistance between $3,200 and $3,400
The well-known Dutch analyst Ted Pillows shares SignalProvider’s view. In a recent analysis on X, he points to a crucial resistance zone between $3,200 and $3,400.
“A convincing breakout above this level could push Ethereum towards $3,800 or even $4,000,” Pillows said. “But a rejection could lead to another test of the $3,000 support level.”
Analyst Ali Martinez also sees that Ethereum is preparing for an important movement. In his technical analysis on X he shows a symmetrical triangle, a consolidation pattern in which the price movement becomes increasingly narrow.
“Ethereum is consolidating and poised to move 30 percent,” Ali writes. The direction of that outbreak is still unclear. But historically, patterns like these are often accompanied by a strong move once consolidation is broken.
Source: https://newsbit.nl/ethereum-koers-stijgt-snel-maar-analist-waarschuwt-voor-correctie/
