Ethereum Pushes Upward in the Overbought Region as It Breaks Above $1,600

Over the past five days, Ethereum (ETH) has held above its moving average lines. The bottom line is that the cryptocurrency will try to rise in the bullish trend zone.

Today, the bulls are trying to break through the resistance at $1,600. On July 18 and 19, the bulls were beaten back when the altcoin reached the high of $1,631. Since the recovery and the subsequent breakout into the bullish trend zone, the upward movement was halted at the high of $1,600.

If the bulls break the recent high and the upward momentum continues, Ether will rise to the high of $2,013. Bullish momentum will extend to the high of $2,967. Conversely, if Ether turns away from the $1,600 resistance zone, the altcoin will fall and be forced to range bound below the resistance zone. Meanwhile, ETH/USD is trading at $1,641.46 at the time of writing.

Ethereum indicator analysis

Ether is at level 67 of the Relative Strength Index for period 14. The altcoin is in the uptrend zone and could continue to rise towards the previous highs. The cryptocurrency is approaching the overbought zone. Ether's price bars have remained above the moving average lines, indicating a possible rise to the previous highs. The altcoin has returned above the 80% area of the daily stochastic. Ether is still trading in the overbought zone of the market.

Technical indicators:  

Major Resistance Levels - $2,000 and $2,500

Major Support Levels - $1,500 and $1,000

What is the next direction for Ethereum? 

Ether has recovered from its downward movement and is trading in the bullish trend zone. Bulls are struggling to break through the resistance at $1,600. The largest altcoin will come out of the downward correction if the bulls are successful. Further upside is likely.

Disclaimer. This analysis and forecast are the personal opinions of the author and 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.