‘BTC rises, and with it, the Altcoins follow behind.’
It has always been the same story. Well, not this time! Ethereum showed a spectacular Bull run, leaving behind its much-decorated counterpart, Bitcoin.
As Bitcoin struggled at its current levels, Ethereum rose more than 7% in the past twenty-four hours. ETHUSD is currently trading at $237.51.
ETHUSD technical analysis and price movement
The day’s range for ETH is $218.85 — $238.00. A look at the hourly timeframe for ETHUSD would reveal that the traded volumes within the last twenty-four hours are much higher than of the previous candles.
The breakout candle in the case of ETHUSD prices was also much higher than the previous average. Prices increase steeply after the breakout. IT shows increased buying pressure.
MACD is pretty bullish after an upward crossover.
Ethereum is much above the 50-SMA and 200- SMA, both in the daily and hourly charts. It indicates that ETH is out of the short term as well as long term Bear market.
Check out ETHUSD Chart on Tradingview.
It is risky to buy the rising ETH now
Investors who are reacting to the dramatic rise of ETH should keep in mind that now would not be the best of times to invest in ETH. The perfect opportunity to buy would have been the first breakout candle. All those who own ETHUSD have an excellent reason to cheer now.
However, going by the overbought RSI, Ethereum prices could witness a massive correction soon. In that case, ETH will fall steeply.
Swing traders and day traders can, however, make good use of the decline, in case that happens. And since ETH is trading at such high levels, the breakout candle would be easy to spot. That would be the perfect time to short Ethereum!
In any case, the dependence of Ethereum on Bitcoin might have a tectonic shift soon!