Ethereum has shown its strength the last week as it rocketed from a low of $2141 to $3000. ETH is known as the powerhouse for DeFi and the price is finally showing who is boss. Ethereum has severely outperformed BTC the last weeks rising nearly 75% against BTC the last month. This rally may soon be coming to a halt as price has reached major resistance levels.
ETH has been riding within a large broadening wedge for all of 2021 (Bold black lines). Within this wedge, ETH price has created an ascending channel which has been respected for the last 2 months. The price is now approaching both top trends as it nears $3000. These top trends have rejected the price each time ETH reaches it. This time should be no different. Minor support to watch as a retracement target is $2800.
ETH Price Analysis: ETH/USDT 1 Day Chart
ETH has now doubled its previous high of $1500 in 2018. If ETH manages to break and hold the major resistance of $3000, this uptrend may continue for longer but this is unlikely. If bears manage to take control, $2800 is a minor support but it isn’t a well respected area just yet. In the case that ETH cannot hold $2800 , the next support is around the $2500 price level.
While looking at the RSI, we can conclude the strength is now in overbought levels. This tells us ETH is in parabolic mode but soon will see retracement below 70. The Stochastic RSI tells a similar story as it is also riding in overbought levels. Strength is maxed out on both indicators and a retracement Is soon to come.
ETH intraday levels
- Spot rate: $2995
- Trend: Bullish
- Volatility: High
- Support: $2800
- Resistance: $3000