Ethereum (ETH) continues to rise sharply, having recorded its highest price since August 4 this Thursday (7).
Despite retreating from its peak of $2,800, ETH is still up 6.7% intraday, according to CoinGecko.
With that in mind, what can we expect from the second largest cryptocurrency on the market in terms of capitalization today?
Ethereum in mixed signals
Ethereum appears to have entered the general crypto market bull run. Despite still being far from reaching new historical highs, the asset has gained more than 20% this week.
Therefore, a scenario with new jumps and stabilization above US$ 3 thousand cannot be ruled out, especially if the current euphoria generated by the election of Donald Trump continues to boost the sector.
However, graphical and technical signals point to an imminent price correction. On the 4-hour chart, the Relative Strength Index (RSI) is extremely overbought, currently above 80 – the highest level since July this year.
Ethereum (ETH) RSI chart on TradingView
Read more: Ethereum ETFs – Understand what they are and how they work
Price prediction
Therefore, it is necessary to use the Fibonacci retracement to predict possible support in case Ethereum enters a correction. As you can see in the chart below, the first zone to watch is the 0.382 retracement level at $2,683.
However, the region most likely to hold a correction and initiate new bounces is the so-called Fibonacci golden zone, between the 0.5 and 0.618 levels. Currently, these levels are at $2,622 and $2,560, respectively.
Ethereum (ETH) chart on TradingView
A drop below this zone would indicate that the correction has become a trend reversal, with a test of the $2,361 bottom being the most likely scenario.
The article Ethereum (ETH) Forecast: How Can the Price Behave Today? was first seen on BeInCrypto Brazil.
