TL;DR Breakdown
- Ethereum price expected to rise above $1,300 by early tomorrow.
- The closest support level lies at $1,200
- The nearest resistance lies at the $1,300 level.
Ethereum (ETH) price is enjoying the strong bull activity as the price continues its climb above the $1,000 level. In the past three days, Ethereum price has established a foothold above the $1,000 level, which has enabled ETH to cross past resistance levels to climb to the $1250 level where it currently trades. Overall, ETH observes a 70 percent increase across the 7-day period.
The broader cryptocurrency market sentiment is also bullish, with most major cryptocurrencies recording double-digit profits across the 7-day period. Many cryptocurrencies record gains upwards of 50 percent while Bitcoin, the king of cryptocurrencies, records a 33 percent rise across the period.
Ethereum price overview: Ethereum price across the last seven days
Ethereum price turned the year with little momentum towards either side as the price consolidated at the $750 level. Between December 29 and January 3, ETH observed little to no volatility as the Ethereum price consolidated at the level.
On January 3, ETH ended the consolidation and started a bull rally entering an ascending channel that carried Ethereum price from the $700 level to the $1,000 level. The price crossed above the $1,100 level, but the bulls were exhausted, and the price retraced to $900. However, ETH bounced back immediately and closed the day above the $1,000 mark.
Since then, the price has been trading inside another ascending channel that has enabled it to break above the $1,100 and the $1,200 level. Since opening today, Ethereum price has established support at the $1,200 level and risen above the $1,250 level to $1,265, where it currently hovers.
Technical indicators and what to expect from Ethereum price
Across the technical indicators, the Moving Average Convergence Divergence (MACD) shows decreasing bullish momentum as the two Estimated Moving Averages (EMAs) converge. However, both EMAs are currently inclined and moving higher, suggesting that the indicator may not switch to bearish in the short-term.
The Relative Strength Index (RSI) shows a similar sentiment as the indicator hovers above the 70 RSI level and sticks close to the 80 RSI – issuing a sell signal. If the indicator crosses above the 80 RSI level, the indicator will issue a strong sell signal calling for a healthy price correction.
Overall, 18 of the 28 major technical indicators are issuing buy signals across the 24-hour frames. Only four indicators are issuing a sell signal, while six indicators remain neutral and do not indicate support towards either side.
If Ethereum price continues inside the ascending channel, ETH may cross above the $1,300 before closing today or by early tomorrow. However, if Ethereum breaks above the ascending channel, ETH may observe a correction to the $1,150 level.
Ethereum price 1-week charts
Across the weekly frames, we can observe that Ethereum has entered a period of high volatility as the size of the candlesticks increase. The Bollinger bands are also expanding, suggesting that volatility may continue to increase in the coming weeks. Since the week’s opening on the 4th of January 2021, the asset has observed a rise of 28 percent.
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