Ethereum closes next gain as tech bullish momentum continues

Ever since Bitcoin crossed the $20,000 price mark, the price of Ethereum has been rising significantly. Over the past 24 hours, ETH has moved slightly lower on its chart, reflecting overall price action. Helped Ethereum price rise 6% last week.

The coin eventually broke its consolidation at the $1,500 price level and has been heading north ever since. The technical outlook for the coin has indicated a continued bullish trend on the chart. Accumulation has increased significantly since Ethereum breached the $1,500 price level.

The possibility of a price reversal cannot be ruled out yet, as ETH was overbought and overvalued. Currently, Ethereum has achieved $1,600 as a support level. The next price correction can help traders with buying opportunities.

A price correction may not occur in quick trading sessions as the demand for the coin is quite high on the chart. The price of Ethereum may continue to rise before the coin returns. Ethereum’s market capitalization increased, indicating that buying sentiment remained high.

Ethereum Price Analysis: One Day Chart

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Ethereum was priced at $1,620 on the one-day chart. Source: ETHUSD on TradingView

ETH was exchanging hands at $1,620 at the time of writing. The immediate resistance for the coin was $1,690. It even corresponds to the 50% Fibonacci retracement level. A move above $1,690 will help Ethereum touch the $1,700 price mark.

The $1,700 price mark is very important, as touching or breaching this mark could mean continued bullish momentum for the crypto.

ETH could also rise to $2,000 if the $1,700 price mark is crossed. This region will serve as a profitable region for traders. On the other hand, if the bullish momentum slows down, the first drop will be at $1,600 and then at $1,520. The volume of Ethereum traded in the last session was red, indicating a decrease in buying.

Technical analysis

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Ethereum was overbought on the one-day chart. Source: ETHUSD on TradingView

The altcoin was still in the overbought zone, which also meant that Ethereum broke a multi-month record in terms of accumulation. The relative strength index stood just below the 80 mark, still indicating heavy buying power and bullishness.

If demand remains at this level, the bullish momentum won’t end anytime soon. ETH was also trading above the 20-Simple Moving Average line, indicating that buyers are building price momentum.

Conversely, the 200-SMA line crossed the 20-SMA line, which means that the coin could be headed for a southward price movement.

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Ethereum showed a sell signal on the one-day chart. Source: ETHUSD on TradingView

As accumulation for the coin has been at a record high, there is still room for a price drop for the altcoin. The Awesome Oscillator, which indicates price direction, showed red histograms, which meant these were sell signals for the altcoin.

Sell ​​signals can occur with price drops. Ethereum may briefly fall in price before resuming its upward trend.

The Directional Movement Index was still positive, as the +DI line (blue) was above the -DI line (orange). The average directional index (red) crossed 40, suggesting that the price direction will gain further strength, forcing ETH to cross its closest price range of $1,700.

Featured image from UnSplash, charts from TradingView.com

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