Quick take:
- Ethereum is currently trading at $1,320 and approx. $100 away from its all-time high of $1,432
- Ethereum might just break its ATH in the coming week if Bitcoin continues with its sideways movement
- However, Ethereum, just like Bitcoin, is in overbought territory with both facing possible pullbacks in the short term
The second most valuable digital asset in the crypto-verse – Ethereum (ETH) – is at the cusp of breaking its all-time high of $1,432 set on January 13th, 2018. At the time of writing, Ethereum is hovering above the $1,320 price area which is $112 away from the aforementioned all-time high.
Bitcoin Remaining Stable is Crucial to Ethereum’s Bullishness
With both Ethereum’s and Bitcoin’s weekly close only hours away, the stability of BTC is crucial in ETH maintaining its bullish momentum that could see it break its ATH in the coming week. In addition to an uncertain Bitcoin, Ethereum is currently in overbought territory as seen through the daily ETH/USDT chart below.
Also from the daily ETH/USDT chart above, the following can be observed.
- Ethereum has gone parabolic as seen through its deviation from the three moving averages. Parabolic moves usually end in a pullback and Ethereum experiencing one is only a matter of time
- Trade volume is still in the green albeit reducing
- The daily MACD is also in overbought territory with its histograms hinting of buyer exhaustion
- The daily MFI and RSI are in overbought territory at 86 and 93 respectively
Conclusion
Summing it up, Ethereum could well be on a path towards retesting or breaking its all-time high of $1,432. Ethereum is currently trading at $1,320 and is approximately $100 away from breaking its all-time high.
However, for Ethereum to achieve this milestone, Bitcoin needs to be steady rolling up to the weekly close that is only a few hours away. Furthermore, Ethereum’s daily chart is hinting at buyer exhaustion that could result in either sideways movement or a dip for ETH to the $1,160 or even $1,000 price area.
As with all analyses of Ethereum, traders and investors are advised to use adequate stop losses as well as low leverage when trading ETH on the various derivatives platforms.