25. January 2023

Ethereum Breaks $1,600, Short-Term Pullback Likely: Analysis

• Ethereum’s price has broken past the $1,600 resistance level, with signs suggesting a short-term correction is likely.
• On the daily timeframe, RSI is in overbought conditions which suggests a pullback is imminent.
• The first potential turning point for the pullback could be the 200-day moving average around the $1400 mark, with the 50-day moving average around the $1300 mark.

Ethereum (ETH) has been on a tear in recent weeks, smashing through several resistance levels to set a new all-time high of $1,600. The bullish momentum is still strong on higher timeframes, but some signs are suggesting that the crypto-asset may be due for a short-term correction. In this Ethereum price analysis, we will take a look at the technicals to see if a pullback is indeed imminent.

On the daily timeframe, the price of Ethereum is constantly climbing higher and could reach the $1800 level soon. However, a short-term pullback seems likely as the Relative Strength Index (RSI) indicator has been in overbought conditions over the past few days, hovering around the 80 mark. This suggests that the bullish momentum may be waning and a retracement is likely.

In the event of a correction, the 200-day moving average located around the $1400 mark could be the first potential turning point. The 50-day moving average is situated around the $1300 mark, and a breach of this level would signal a more significant retracement. If the price of Ethereum falls below the $1300 mark, it could be a sign that the bullish trend is ending and a more substantial correction may be on the cards.

In addition, the volume on Ethereum has been relatively low over the past few days, which could further support the notion that a pullback is imminent. Volume is an important indicator of market sentiment, and the lack of buying pressure could indicate that the bulls are losing steam.

Overall, the technicals suggest that a short-term correction is likely. However, the long-term trend remains bullish and a breach of the $1800 level is still a possibility. As always, traders should use proper risk management techniques and be aware of the risks associated with trading cryptocurrencies.