- Ethereum price shows a 37% year-to-date, which is almost equal to that of Bitcoin.
- The upside for ETH could extend up to $1,820, but if the momentum indicator continues to wane, this could be a top signal.
- Invalidation of the bearish thesis will occur if ETH flips $1,820 into a support floor while the RSI momentum produces a higher high.
Ethereum price has shown an exponential increase over the last three weeks. While a few bearish signs popped up along the way of lower timeframes, bulls continued to triumph. Now, another “sell sign” has been painted on the twelve-hour chart, which forecasts a trend exhaustion move is underway.
Ethereum price and its current state of things
Ethereum price has rallied 37% since 2023 began and is currently hovering around $1,650. This massive ascent has set up two higher highs on January 13 and 20. But the Relative Strength Index (RSI) has formed a lower low above the overbought zone.
This non-conformity is termed a bearish divergence and indicates that the momentum is waning, which could trigger a trend reversal favoring the bears.
While the obvious theoretical outlook would be for Ethereum price to retrace, due to the formation of the equal high at $1,650, there might be a liquidity run, which could produce a third higher high.
In this situation, bulls have a chance to come back by pushing the momentum indicator to produce a higher high as well. If buyers fail to make this happen, investors should start preparing for a trend reversal. The high timeframe support at $1,568 is the level that bears have to overcome in order to build up momentum against buyers.
If $1,568 is flipped into a resistance level, it will open the path for sellers to drive Ethereum price to $1,417, $1,331 and $1,227 support floors.
ETH/USDT 12-hour chart
What should bulls rectify?
As explained above, the chances that Ethereum price goes for another leg-up and set up a potential local top at $1,850. In its journey to collect liquidity resting above $1,650, ETH bulls need to make a comeback that pushes the RSI to produce another higher high in the overbought region.
If successful, Ethereum price could flip the $1,820 hurdle into a support floor. This move will invalidate the bearish thesis provided the RSI supports its ascent. Such a development could also open the path for ETH to retest the $2,000 psychological level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Prisma price tanks 25% after nearly $9 million exploit
Prisma Finance (PRISMA) is being exploited, and the attacker has so far pulled $9 million in Ethereum from the borrowing protocol. Prisma asked vault owners to take the necessary steps to protect funds from the ongoing attack in an official tweet on X.
Meme coins gain traction after SEC’s partial win in Coinbase lawsuit: DOGE, SHIB, BRETT, POPCAT, BODEN
US SEC pocketed a partial win in its lawsuit against Coinbase, ushering a correction in crypto prices on Thursday. Despite the broad pullback, prices of meme coins like Dogecoin, Shiba Inu and Solana-based BRETT, POPCAT and BODEN increased.
Ondo moves $95 million worth of OUSG assets to BUIDL as tokenized fund attracts $245 million since debut
Ondo Finance (ONDO) announced on Wednesday that it's shifting about $95 million worth of its OUSG's underlying assets to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
XRP price stuck below $0.65 resistance, Ripple lawsuit could suffer from Coinbase defeat
XRP price falls slightly to $0.61 on Thursday after its landmark programmatic sales ruling in July, which gave Ripple a partial victory against the US SEC, failed to reverberate in a similar legal battle between the regulator and crypto exchange Coinbase.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.