Ethereum price analysis: Will ETH/USD face bearish correction soon?
- ETH/USD has gone up from $316.50 to $333.50 so far this Wednesday.
- The price may face bearish correction since it is a little overvalued.
ETH/USD bulls have been in control of the market for three days in a row. While the price has gone up from $316.50 to $333.50 so far this Wednesday alone, the bulls will need to push it up even further to $350 to continue their upward momentum. The hourly chart shows us that ETH/USD has spiked from $316 to $331 in just one hour. This could mean that the price is currently overvalued and may face bearish correction.
ETH/USD daily chart
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The 20-day Bollinger band jaw has widened, so it indicates increasing market volatility. The last session has taken the price above the upper curve of the Bollinger band, suggesting that it is overvalued. The price is trending in an upwards channel formation and above the 200-day simple moving average (SMA 200), SMA 50 and SMA 20 curves.
The moving average convergence/divergence (MACD) indicator shows ten straight bullish sessions of increasing volatility. The Elliot oscillator has had 12 bullish sessions out of the last 13. The relative strength index (RSI) indicator is trending around 77.25 inside the overbought zone.
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
