FxNews — Ethereum‘s uptrend is momentarily on pause. The bulls recently peaked at $2,135, matching the April high. Notably, the RSI indicator has lingered in the overbought zone for some time. Despite this strong upward momentum, analysts at FxNews anticipate a correction in Ethereum’s price. The focus is on the 23.6% Fibonacci level for potential declines. Importantly, the $1,990 area could offer an attractive entry point for buyers. This might inject new momentum into the bullish trend.
For a closer look, let’s zoom into the 4-hour chart. It provides a clearer view of ETHUSD’s price dynamics. For a bearish shift to take hold, the pair must first break out of the current bullish flag. As long as the price stays within this flag, the overall outlook for Ethereum remains positive.
However, caution is advised for new long positions. The market has already witnessed significant buying activity, indicating potential over-saturation.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.