ETH/USD Rally Persists as RSI Holds in Overbought Territory

ETH/USD registers a fresh yearly high ($3002) as the Relative Strength Index (RSI) holds in overbought territory, but a move below 70 in the oscillator may accompany a near-term correction in Ethereum like the price action from last year.

ETH/USD Outlook

ETH/USD stages a four-week rally as it extends the advance from the start of the month, with a break/close above $3110 (78.6% Fibonacci extension) opening up the $3230 (161.8% Fibonacci extension) to $3360 (100% Fibonacci extension) region.

Next area of interest comes in around the April 2022 high ($3581), but failure to break/close above $3110 (78.6% Fibonacci extension) may pull the RSI back from overbought territory, with a breach below the $2760 (50% Fibonacci extension) to $2800 (50% Fibonacci retracement) region raising the scope for a move towards the $2550 (38.2% Fibonacci extension) to $2620 (38.2% Fibonacci extension) area.

--- Written by David Song, Strategist