Ethereum has rallied to $1,700 after the bulls have broken the $1,440 overhead resistance. Before now, Ether has been in a range-bound movement for two weeks because of the bulls' inability to break the $1,440 resistance.
The breakout on February 2 has propelled the coin to reach its target price of $1,675. On the upside, the crypto will reach a high of $2,000, if the bullish momentum is sustained.
However, today, Ether is retracing from the recent high. The daily stochastic has indicated that the coin has reached the overbought region of the market. Sellers have emerged to push prices down. The RSI has indicated that the altcoin has not gotten enough room to rally on the upside. Meanwhile, as the altcoin retraces it may find support above the breakout level of $1,440. This arrangement is likely for a possible resumption of the upside momentum.
As earlier indicated Ethereum is above 80% range of the daily stochastic. This is the reason the coin is overbought. In the same vein, the coin is at level 68 of the Relative Strength Index period 14. The RSI is said to be overbought when it is over 70. Ether is rising because the crypto’s price is above the SMAs. A downtrend will ensue if it falls below the SMAs.
Major Resistance Levels – $1,600 and $1,800
Major Support Levels – $1.400 and $1,200
The biggest altcoin is on the rise after breaking the $1,440 resistance. The Fibonacci tool indicated a possible uptrend on January 9. A retraced candle body tested the 61.8 % Fibonacci retracement level. This retracement indicates that ETH will rise to level 1.618 Fibonacci extension or a high of $1,739.45.
Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their research before investing funds.