FxNews—Ethereum rose from the $3,470 support on December 24th. The uptrend resumed after the bulls broke the $3,760 resistance. This surge in the cryptocurrency‘s price was anticipated because the 38.2% Fibonacci retracement level held strong.
As of this writing, ETH/USD trades at approximately $3,900, aiming for the $4,000 threshold.
The primary trend is bullish because Ethereum prices are above the 50- and 100-period simple moving averages. However, the Stochastic Oscillator and RSI 14 depict 90 and 74 in the description, respectively, meaning ETH is overpriced.
This technical indicator development suggests the primary trend should resume after a minor consolidation.
Ethereum Overpriced: Wait for Drop to $3760
As elaborated, Ethereum is overpriced. Therefore, joining the bull market at the current price is not advisable. We suggest waiting patiently for the market to consolidate near $3,760.
This supply level provides a decent bid to plan a bullish strategy. Traders and investors should monitor this support area closely for bullish candlestick patterns.