In line with high market optimism, ETH gained significantly in value during the previous week. On the other hand, there are news reports that Shanghai hard fork will be released in March this year, which would allow users of staked ETH to unlock their coins on the blockchain. Usually, a release of a fork helps coins to gain in value, this time analysts are sceptical whether this will occur to ETH in the coming period. This comes as a question whether the holders of staked ETH`s will start selling the coin or not. Anyway, we will see the market sentiment during the March, and release of the Shanghai hard fork.
It was one of the extraordinary weeks for ETH, when the coin managed to increase its price from $1,28K from the start of the week, up to $1.590 as of the Saturday`s trading season. The RSI reached level of 85, which indicates a heavily overbought market. After such a strong push, it could be expected a short term price reversal to the downside. At the same time, there has not been much changes with MA50 and MA200 lines as they continue to move as two parallel lines, bu, at least, they have stopped the downtrend.
After such a strong push to one side, markets will need a few days to calm down and find new trading levels. After RSI reached a heavily overbought side, short term reversal could be expected in the coming week. As per current charts $1.450 emerges as a potential short term stop line, with some probability that $1.4K support might be tested. Further move to the higher grounds is under question at this moment, and could occur only if new funds are pumped into the market.
It was one of the extraordinary weeks for ETH, when the coin managed to increase its price from $1,28K from the start of the week, up to $1.590 as of the Saturday`s trading season. The RSI reached level of 85, which indicates a heavily overbought market. After such a strong push, it could be expected a short term price reversal to the downside. At the same time, there has not been much changes with MA50 and MA200 lines as they continue to move as two parallel lines, bu, at least, they have stopped the downtrend.
After such a strong push to one side, markets will need a few days to calm down and find new trading levels. After RSI reached a heavily overbought side, short term reversal could be expected in the coming week. As per current charts $1.450 emerges as a potential short term stop line, with some probability that $1.4K support might be tested. Further move to the higher grounds is under question at this moment, and could occur only if new funds are pumped into the market.
