- Ethereum price shows clear signs of exhaustion as the bearish divergence progresses on the daily chart.
- Investors can expect another legup to push the smart contract token above $1,679 and tag the $2,000 psychological level.
- A downtrend will be confirmed when ETH breaks below the 200-day EMA at $1,509.
Ethereum price hits new highs as the bulls draw their last breath after an explosive rally.This slow movement seems to prepare for a minor pullback, but in some situations bitcoin price And depending on that preference, things can change dramatically.
Ethereum Price in a Difficult Place
Ethereum’s price hit two highs on January 17th and 21st after rising 38% over the past three weeks. These swing points mean nothing on their own, but when paired with the low highs in the Relative Strength Index (RSI), they point to waning momentum.
This discrepancy is called a bearish divergence and suggests that the bullish trend is exhausted and a reversal may be in the works.
However, it’s not all technical in the crypto space, as Bitcoin has more influence than the second largest altcoin by market capitalization. Therefore, Ethereum price may trigger another run-up despite the apparent depletion, generating its third-highest high while the RSI generates his third-lowest high. Such a move would maintain the bearish divergence, but market makers could gather liquidity for a buy stop above $1,679 to trap the early bearish.
Investors should be aware that during this liquidity hunt, the price of Ethereum could rise as high as $2,000.
ETH/USDT 1-day chart
If Ethereum Price Decides To Go Up, It’s A Short-Term Bullish Outlook, runs in smoke. A strong comeback of Bitcoin bulls could change this outlook. In such cases, ETH may continue to rise.
on the other hand, ethereum The beginning of a bearish trend is confirmed when the price breaks below the 200-day Exponential Moving Average (EMA). A development like this would pave the way for the seller to take the lead and drive ETH down to his $1,361, the confluence of his 50-day and 100-day EMAs.