Ethereum (ETH) cryptocurrency market is experiencing a powerful bullish trend. However, ETH/USD is in the overbought zone, so a correction should occur, as a result of which the coin will fall in price to $ 2,200 by April 22.
Ethereum rate began to be pumped on Monday. ETH value overcame resistance around $ 2,167 and began to rise rapidly. In total, four impulses were recorded: during the first, the price of the coin increased by 7.88%, the second – 5.17%, the third – 6.29%, and the fourth – 3.11%. The last push was not only the least significant, but also gave way to the previous two in terms of trading volume. This gives the impression that the ETH rocket is running out of fuel.
On April 14, Ethereum market was at its highest overbought condition in the last three months. Nevertheless, the upward movement continued and on Thursday the value of the cryptocurrency reached a record high in history – $ 2478 (on the Bitstamp exchange). Moreover, there are nine green four-hour candles in a row on the chart – a phenomenon that has not occurred since at least September last year. All these factors indicate that the market is overheating, as a result of which it is too risky to buy ETH now.
Over the past year, there has never been a situation in which the ETH rate did not fall after the Market Cipher index exceeded 73 (now 76). A correction is certainly inevitable, but the main question is to what range the upward movement will continue. In this case, an analogy can be drawn with the dynamics of changes in the value of a coin in early April. The price of the coin overcame resistance around $ 1,867 and rose by almost 21% in 36 hours. If this situation repeats, then the peak will be at around $ 2,536.
The upper line of the ascending channel, which was broken on April 12, now acts as a support barrier. In this regard, the bearish trend is likely to fizzle out in the $ 2,200 zone. The previous 10% correction speaks in favor of this scenario. In addition, sellers will face strong resistance at 78.6% Fibonacci level ($ 2,180), recorded during the pump from $ 2,095 to $ 2,478.
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