Analyst Says Ethereum Primed For Correction Despite Bullish Momentum
Bitcoin had always led the charge in the crypto market from when it was launched till this moment. Despite other altcoins coming out after the premier digital asset launch, none has increased in price as Bitcoin has. With Bitcoin’s already established status as the crypto market leader, Ethereum has displaced other coins to move into second place.
Even though the distance between Bitcoin and Ethereum is massive, one would note the second place coin is making massive moves. Recently, Bitcoin hit its all-time high record, a move that sent all other digital assets in a bullish run.
Bitcoin price surge contributing to altcoins surge
With Ethereum in bullish momentum, an analyst has noted that the digital asset might be primed for a price correction. It can be argued that digital assets do not undergo a noticeable price correction while on bullish momentum. This analyst has said that the current bullish run will not help Ethereum stop the upcoming price correction.
Even though Ethereum has faltered a little in price with this coming due to Bitcoins retracement after touching the $24,000 price mark, Ethereum is still tipped to make another surge. As it stands now, Ethereum and the other digital assets will be depending heavily on Bitcoin to contribute to their bullish momentum.
According to the analyst, the recent technical reading that Ethereum shows is a major reason why the digital asset will trade downward. Backing up his prediction, the analysts pointed at the Relative Strength Index of the coin, something that has always been right regarding the bullish move of the coin. Presently, the RSI of Ethereum is showing that the digital asset is trading in a bearish direction once again.
Trader says RSI shows Ethereum will go bearish in the coming days
Ethereum is presently trading around $613 after witnessing a recent decline of about 4% to close the day yesterday. This is a very noticeable decline run from the previous $670 high record set in the early hours of yesterday. The direction that Ethereum will trade in the next couple of days will be solely dependent on what happens as regards its latest resistance level of $600.
If the coin successfully breaks below this point, it is primed to lose some value, but this level is regarded as the digital asset’s next support level. Another trader has backed up the analyst has he mentioned that the coin is well in line to witness a price correction, which could happen in the coming days. He also talked about the daily stochastic level, which was shown in its RSI.
“Ethereum is showing a bullish sign at the moment, but looking at the latest the BTC/ETH trading, one will notice that it is going to move in a bearish direction,” the trader said. In the coming days, only this correlation would be able to know the direction that Ethereum will trade in the coming days with the coin presently tipped to recover a little ground against Bitcoin.