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Bearish Divergence Haunts ETH Price
The bullish trend of Bitcoin rallied most of the coins together with it, Ethereum being one among them. During the ongoing bullish trend, the BTC price and the ETH price both hit the yearly highs and suddenly dropped during the launch of ETH 2.0.
According to some indicators, a bearish pullback might encircle both BTC and ETH price. After being in the ‘overbought’ position for more than 20 days, the RSI indicator has slipped signifying the possible downtrend.
Previously during the August-September 2020 rally which pushed ETH price above $400, the RSI indicator was in the ‘overbought’ position for quite a long time. Later the RSI fell below 40 and the ETH price also slipped down to $311.
Currently, RSI was overbought for nearly 20 days maintaining the average of RSI 75 and later dropped massively. Therefore a gigantic pullback may be expected before surging to the next levels.
Also Read: With a Decline in the Gas Fees, Ethereum Price Sets $700 Next Target
Ethereum Price to Test Previous Highs
Irrespective of a massive pullback and the price plunge of a majority of the crypto assets, ETH price is can fly as high as $800. As per a crypto analyst Daan Crypto Trades, the quick corrections of the ETH price may lead to a magnificent surge.
$ETH
— Daan Crypto Trades (@DaanCrypto) December 2, 2020
Ethereum is still going to $800.
Perfect retest of the previous highs. This is what you want to see out of a bull market. Quick corrections that get bought up quickly into new highs. pic.twitter.com/u4PogZ3ZOo
As per the analyst, the price may experience an amplified up and downs before it reaches $800. The ETH price was slashed dramatically with the launch of ETH 2.0 Beacon Chain but reclaimed the losses within no time.
The Ethereum price at the time of composition stands at $601.12 with a gain of 2.56 percent in the last 24-hours. The new resistance levels are stands at $623 and the strong support levels are at $587.
The crypto space is extremely bullish hoping for a positive outcome of the recently launched ETH 2.0 Mainnet. Additionally, the technical indicators also point towards a ‘buy’ signal which signifies the uptrend of the digital asset.
Also Read: Ethereum Price Analysis: ETH Price Record Gains As Markets Swing Bullish