Ethereum has replicated Bitcoin’s price performance as it hovered close to its ATH climbing above $1,400 for the first time in three years. Thanks to nearly 20% weekly gains, several prominent cryptocurrency exchanges including Binance reported their highest ETH prices at nearly $1,475 before the crypto-asset noted a little retracement.
Ethereum rose by 7.06% over the last 24-hours driving its price to $1,433. At the time of writing, the world’s largest altcoin registered a market cap of $163.5 billion and a 24-hour trading volume of $44 billion. Despite price inaction in terms of the wider market, the sentiment around Ethereum has become considerably positive.
Ethereum [ETH] Daily Chart:
As depicted by the daily chart, Ethereum [ETH] price candles climbed the rising wedge pattern as it shattered the ATH ceiling once again. However, as per convention the formation of rising wedge is bearish prompting the price of the crypto-asset to break down and head lower.
The moving averages, on the other hand, continued to form crucial support points for ETH’s price which noted a decoupling from Bitcoin. The rising gauge between the 50 DMA [Pink] and 200 DMA [Purple] depicted the continuation of strong bullish momentum in the coin.
The technicals, however, provided a contradictory picture. The red closing lines of Awesome Oscillator indicated a shift to bearish momentum which has been at play since the minor pullback that the crypto-asset witnessed on the 21st of January.
The Stochastic RSI bounced from the oversold region depicting an increasing buy demand among the market participants. However, the RSI formed a bearish divergence creating an overbought reading while it formed lower higher as the price formed higher highs.
The above indicators and pattern formation potentially indicated that a local top has formed and an upward move above the recently established ATH might not transpire in the short-term. Having said that, the buyers are not done yet and the long-term outlook continued to hover in the bullish territory.
Crucial levels to watch out for in case of a pullback were found to be at $1,109 and $901 respectively.