Ethereum Price Analysis: ETH/USD ready to retest two-year high after a short-lived correction

Ethereum (ETH) has hit $430.00 during early Asian hours amid strong bullish momentum. While the coin retreated to $423.00 by press time, it is still over 4% higher from this time on Sunday and close to the highest level in the recent two years.  Ethereum's trading volume exceeded $12 billion, while its market capitalization is registered at $47.5 billion.

ETH has been capitalizing on a DeFi boom recently. The explosive growth of the decentralized finance sector (DeFi) spurred the demand for the second-largest digital asset. ETH/USD has gained 10% over the weekend and 220% since the beginning of the year,  and the upside momentum is gaining traction.

ETH/USD: The technical picture

On a weekly chart, ETH/USD recovered from the sharp sell-off to $370.15 during the previous week and settled above the psychological $400.00. The RSI has entered the overbought territory, however it is still pointing upwards with no signs of reversal. It means that ETH is poised for further growth in the long-term. The local resistance is created by $450.00 ( the upper line of the weekly Bollinger Band). Once it is out of the way, the upside is likely to gain traction with the next focus on $500.00 The last time eh/USD traded above this area in July 2018. 

ETH/USD weekly chart

The daily chart implies that the price may retreat towards the lower boundary of the current range at $370.00 before the upside is resumed. The RSI has reversed to the downside, while the price failed to retest the recent high, which means the upside momentum may be losing traction for now. The first support is created by $400.00 and the above mentioned $370.00 ( the lower line of the daily Bollinger Band), but the overall trend remains bullish as long as the price stays above daily SMA50 at $350.00.

ETH/USD daily chart