Known as the “digital oil” of the crypto-space, Ethereum fuels the protocol layer. The second-largest cryptocurrency has hit new records at the start of 2021, at the value of $1522 making it reach a new all-time high and a market cap of $201,685,505,232 at the time of writing.
The opening price of ETH was $1743.93 on February 9, 2021. As of February 14, 2021, ETH closed at $1800.42. Thus, in the past week, ETH has surged by 3.23%.
In the past 24 hours, ETH has been trading within the price range of $1655.67-$1850.
The news coming in is that the ETH crypto has started price correction. It has dipped by 8% since morning and has fallen below the $1800 support level.
Currently, ETH is trading at $1735.88. This is a sharp decline from the opening price of $1800. For the past few hours, the price is continually below the SMA and EMA lines. This implies a price downtrend.
The A/D line had fallen sharply but has started rising again. Thus, selling pressures were high a few hours back. But, now buying pressures are slowly building up. The OBV indicator is also showing a similar pattern. This is indicative of price adjustments in the ETH market.
The RSI indicator is at 61%. It is slowly rallying towards the 70% mark. Thus, demand for ETH is increasing post a sharp fall, a few hours back. Thus, the steep price pullback was a corrective action. Now, we can expect the price to rise again but will it cross the 24-hour high of $1850 is yet to be seen.
The stochastic oscillator is giving similar indications. The actual value line of the stochastic and 3-day SMA line are well above the 80% mark. They are in the ‘overbought’ region indicating high buying pressures. Thus, the price is likely to start moving upwards again. It is a good time for swing traders to offload.
The MACD and signal line were in the negative territory for a long time. But, now they have turned positive. This implies that the price downtrend is gradually reversing.
Similarly, the AO indicator was negative and showing strong ‘sell’ signals some time back. But, now it has turned positive and the ‘buy’ signals are gaining strength. Thus, the bearish momentum is slowly reversing.
The ADX indicator, however, continues to fall. There is a negative divergence between the price and the ADX line. The price downtrend is still strong. In other words, bullish momentum is still weak.
Currently, the price is much below the Fibonacci pivot point of $1768.20. By the end of the day, if the ETH price manages to go past the Fibonacci pivot point, then the trend reversal is confirmed. If it closes above the first Fibonacci resistance level of $1842, the price uptrend will resume and continue tomorrow as well.
The price has started moving upwards from the 61.8% FIB retracement level of $1729.51. If it breaks out of the 38.2% FIB retracement level of $1775.14, by the end of the day, the bull-run will resume.