The cryptocurrency has officially reversed the trend. The pair has been able to break three resistance levels in our Fibonacci retracement in less than a month, including the 50%, which is often an indicator of a trend reversal. Ethereum is headed to break the 61.8% retracement of the uptrend continues as expected.
The Bollinger bands are closing up, indicating price consolidation; the pair has traded between the support at $3,040 and the resistance at $3,356.
The relative strength index is currently at 58%, recovering from an overbought status just five sessions ago. The pair was trading above the upper band, suggesting it was relatively high, which persuaded traders to close their long positions and drove the price down temporarily.
Our parabolic SAR indicator suggests that the price will continue to fall in the short term; however, this lagging indicator takes heavy consideration in the most recent pullback. From a technical point of view, this retracement will allow the cryptocurrency to gain strength and attempt a breakout on the 61.8% retracement in the short term.
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