Key Highlights
- Ethereum price showed no mercy to the sellers’ vs the US Dollar, as it continued to rocket higher.
- A new high was formed in ETH/USD, as the price surged above the $17.00 level.
- Looking at 4-hours chart (data feed via Kraken) of ETH/USD, the technical indicators are around overbought levels, which is a warning sign.
Ethereum price surge continued intraday vs the US Dollar. It looks like ETH/USD may be boosted further, but I suggest trading with caution.
Ethereum Price Overbought?
Ethereum price ETH made a new high against the US dollar for the second time in a new this week, as ETH/USD traded as high as $17.78. There was an upside thrust taking the price higher. Furthermore, there was a lot of buying interest noted recently for crypto currencies, as BTC and ETH both were seen moving higher.
If we look at the 4-hours chart (data feed via Kraken) of ETH/USD, then there was a break above a bearish trend line. The highlighted break opened the doors for sharp gains in ETH, taking it above the $17.00 level. More importantly, as mentioned yesterday, the price moved above the $15.00 level, which was a crucial resistance and may now act as a support zone.
Currently, the technical indicators are in the overbought levels, which is a warning sign for the bulls. There can be a correction anytime in ETH/USD. So, I suggest trading with caution in the short term, as there is a chance of a down move. Only consider buying if you are placing a tight stop for your trade, or better wait for a major correction to enter into a trade.
Hourly MACD – The MACD is strongly placed in the bullish zone, pointing towards the buyer’s strength.
Hourly RSI – The RSI is around the overbought levels, calling for a correction in ETH.
Major Support Level – $16.80
Major Resistance Level – $17.75
Charts courtesy of Kraken via Trading View
