- ETH buyers contemplating the next move higher.
- $1400 remains in sight so long as 21-SMA on 4H chart holds.
- Overbought conditions on 1D chart point to a brief bullish consolidation
ETH/USD seemingly lacks a clear directional bias while trading around $1200 so far this Saturday, having staged a strong bounce from Friday’s deep correction to sub-$1100 levels.
ETH/USD: Daily chart
As observed in the daily chart, Ethereum has additional room to the upside, with eyes set on the January 14 2018 high at $1419.
However, doji candlesticks formed for the third day in a row have left the buyers unnerved. Further, the 14-day Relative Strength Index (RSI) holds in the overbought region, around 88.0, flashing caution for the bulls.
Therefore, the price could enter a period of consolidation around the current levels before the buyers gear up for re-entry. At the moment, there seems to be strong demand around the $12K mark.
Friday’s low of $1063 could be put to test if the corrective pressure mounts.
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ETH/USD: Four-hour chart
Narrowing down to the four-hour chart structure, the further upside appears more compelling, as the no. 2 coin has once again managed to defend the critical 21-simple moving average (SMA), which is currently placed at $1194.
It’s worth noting that the price has not closed the candle below the 21-SMA since January 2 2021.
ETH/USD wavers within a potential rising wedge pattern. A breach of the abovementioned crucial support could expose the rising trendline support at $1139, below which Friday’s low remains in sight.
However, a run up towards the rising trendline resistance at $1348 and beyond looks likely, as the RSI points north above the midline, now standing firmer at 59.80.