Ethereum (ETH) has spent the weekend mostly trading sideways after a failed attempt of breaking the $1,300 mark. The consolidation phase came after three days of almost constant price increase, which started at slightly below $1,000. Ethereum is now preparing for the next move, but where will it go?
Fundamental analysis: a combination of factors makes Ethereum a strong buy
Ethereum’s overall outlook is very bullish, which immediately caused a short-term decoupling from Bitcoin. ETH has had a great week and posted gains of 9.28%, outperforming BTC’s loss of 3.08%. On the other hand, XRP managed to lose 9.12% in the same period.
Its bullish outlook comes from several factors, such as whales buying any Ethereum that comes with the discounted price on the market, the overall increase in the number of wallets on the network, as well as from the DeFi sector’s current expansion (as most of the DeFi projects are built on the Ethereum blockchain).
At the time of publishing, Ether is trading for $1,235, representing a 69.35% month-over-month. Ethereum is currently the second-largest cryptocurrency by market capitalization, boasting a value of $141.25 billion.
ETH/USD technical analysis: is this the top?
Looking at the daily chart, Ethereum’s price has been slightly unstable in the past days, but the cryptocurrency managed to find support in the 21-day moving average and stay above the $1,000 level. This caused it to make another stride towards the upside and push itself back near its all-time high levels. ETH/USD is currently outperforming BTC/USD, which is currently in a short-term downtrend.
Due to its descending volume (which can be seen on the daily chart) and relatively high RSI value, most analysts predict that Ether’s price will move down and possibly retest the $1,000 level, especially if BTC’s price continues moving towards the downside.
Ether will, depending on if it breaks its immediate support ($1,103) or resistance ($1350) level, most probably make a move with great force and high volume.
ETH/USD daily chart
Taking a look at the technicals, Ether’s daily RSI chart previously stepped out of the overbought area, and it is now hovering just below it. Its current value is sitting at 67.09.
ETH/USD 1-hour chart
Zooming to the hourly time-frame, we can see Ether’s slow price increase that started on 13 Jan and ended on 16 Jan with ETH/USD hitting just below $1,300. This move has increased Ether’s price by a whopping $300. Its inability to break the $1,300 level has caused a slight volume decrease (which was already prominent on the daily chart) and a period of sideways or slightly-downwards movement. Traders are expecting Ethereum’s price to move very soon.
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