- Ethereum price has risen for the ninth day in a row.
- ETH hits November highs and could be 7% above current market value.
- Based on historical evidence, ETH may drop 25% and then rise towards all-time highs.
Ethereum price continues to show strong strength in the market. While there may still be some skepticism among traders, ETH could rise significantly based on the technical factors discussed below.
Ethereum Price Shows Strength
Ethereum prices show considerable market vigor as the decentralized smart contract token generated nine consecutive green daily candles. The newly discovered uptrend has returned 25% of his lost market value to investors since ETH last paused at $1,240.
Ethereum is currently auctioning at $1,580, just 7% below November’s monthly high of $1,680. There are several factors to keep in mind about the current uptrend as the bulls prepare for a breakout.
The 8-day Exponential Moving Average (EMA), an indicator used to measure the short-term movement of the market, is impulsively moving north and just below the current auction price. A pacing indicator suggests basic support for the ETH token.
The Relative Strength Index (RSI), an indicator used to measure the potential power of market participants, shows that the ETH price is extremely overbought around the 90 level. The last time Ethereum hit 90 on the RSI was in January 2021, when ETH briefly tagged $1,300 and hit a new all-time high. After hitting new all-time highs, it pulled back slightly to $950, 25% below the 21-day simple moving average. Ethereum then embarked on an unprecedented triple his bull market a few weeks later, breaking into the $4,000 price range.
ETH/USDT 1-day chart
ETH could be headed for all-time highs if history repeats itself, but traders should be on the lookout for possible buyouts in the coming weeks. The 21-day simple moving average tag at the moment is a 15% drop to the $1,330 price range.