Technical Analysis – ETHUSD storms to a fresh 26-month peak
ETHUSD ascends sharply, touching 4,000 psychological mark
Momentum indicators are deep within overbought zones
Risk of a pullback is high given the overstretched rally
ETHUSD (Ethereum) has been in a steep uptrend, surging to consecutive multi-month highs. However, traders should not rule out an impending downside correction as the short-term oscillators are flagging extremely overbought conditions.
Should bullish pressures persist, the price might revisit its recent 26-month peak of 3,902. Breaking above that zone, Ethereum could advance towards the December 2021 resistance of 4,150. A violation of that zone may pave the way for the December 2021 hurdle of 4,490.
On the flipside, bearish actions could send the price to challenge the April 2022 resistance of 3,580, which could serve as support in the future. Further declines might then cease around the March 2024 support of 3,260. Sliding beneath that floor, the price could test the February support of 2,900, which also held strong in April 2022.
Overall, ETHUSD has been posting a series of consecutive multi-month highs, but the advance is starting to look overdone from a technical perspective.
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