- Ethereum is set for correction after crossing the overbought position
- ETH/USD entered the overbought region after pushing above the $300 mark
- The digital asset surged by 40% last week to reach a new high of $335
Ethereum News Today – the price of Ethereum is in the overbought area. The coin is now bound for a price correction. Ethereum reportedly moved into the overbought territory after pushing above $300. The coin surged by 40% in the last week to a new high of $335. The move shows some ETH holders have taken advantage of the coins’ recent bullish momentum to take profits.
The growing selling pressure could cause a steep decline that will push Ether’s price to $273. In any case, Ethereum’s on-chain metrics are weak despite the recent bullish action. If this trend continues, then a steep correction should happen shortly.
Ethereum Posts New Yearly High of $335
Ether made headlines recently after its price broke out of a stagnation phase that lasted two months. After the breakout, the smart contracts giant rose higher by 40% after smashing through its mid-February’s peak position. The bulls have been behind Ether and have been significant to the push to a new high of $335. Along with the price, the total number of ETH mentions on the different social media platforms has skyrocketed.
The social volume index of Santiment registered more than 3,700 new mentions in the last 24-hours. This is reportedly the highest social engagement to be recorded since the market meltdown in March. According to Dino Ibisbegovic, who serves as the head of content and SEO at Santiment, the growing chatter in the second-largest crypto by market cap has been proven to be a negative signal that typically causes steep corrections.
Ethereum is Showing Multiple Sell Signals
Indeed, the price of Ethereum seems to have gotten to an exhaustion point. Meanwhile, investors have become optimistic about the current upward pressure. The coin’s price posted a 9% nosedive that took it to a low of $306. Even though Ether has recovered some of its recent losses, the network’s metrics indicate that the asset could be set for a steeper drop. The TD sequential indicator is showing a sell signal on the 1-day chart for ETH/USD.
The bearish formation came in the form of a green candlestick. This kind of technical pattern is a sign that Ether could be moving towards a one to four-day candlestick correction before any fresh upward movement. Going by ETH’s historical data, we can agree that the TD setup is accurate at predicting local bottoms and tops when it comes to Ether’s price movement. It has previously presented a buy signal back on July 18, before the current rally started. Hence, we can agree that the current forecast must not be overlooked.