Having set fresh record price highs today, ethereum’s native token is looking to push higher.
As per CoinDesk’s price index, ether (ETH) moved above $500 at 12:35 UTC and hit an all-time high of $522 soon after. Data from CoinMarketCap shows ETH has appreciated 8.74 percent in the last 24 hours.
Stepping back a bit, this is a sharp reversal from mid-September when prices had fallen almost 50 percent to near $200 levels. However, they soon regained the bid tone – supposedly on the back of the sharp rally in bitcoin prices. The big breakout above $320 happened earlier this month, and as of now, ETH is up a staggering 7,000 percent on a year-to-date basis.
So, will the rally continue? The price action analysis suggests ether bulls could have a breather around $500 levels in the short-term.
The above chart shows:
- Ether is overbought as per the relative strength index (RSI).
- The first attempt to take out the resistance ($514.52) offered by 161.8 percent Fibonacci extension level has failed.
Most analysts/traders consider 161.8 percent Fibonacci extension a major target or resistance level. The fact that ether is showing signs of exhaustion around that hurdle, at a time when the RSI is screaming overbought conditions, indicates prices could consolidate around $500 levels for the next few days.
The 10-day MA is sloping upwards, suggesting dips below the same are likely to be short-lived.
Pause button image via Shutterstock
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.