Since late September, the cryptocurrency has been on an upwards trend; it managed to gain more than 50% in less than a month. The price now lost almost 10% in a single session, it came close to entering an overbought status, but the price dropped.
The Bollinger bands are slightly closing but still pointing up, indicating that the upwards trend will continue. The retracement could be temporary, and ETH could continue moving up in the short term after the pair gathers strength.
The relative strength index came close to being overbought on Oct 20th, but the price suffered a loss on a very volatile day. In the last three trading sessions, it has retraced to the 3940’s level. There might be a chance of recovery for the crypto in the short term. Retracement is necessary for the continuity of the uptrend in the mid-term.
Our parabolic SAR now indicates that the price will continue to fall in the short term, but we normally only use this indicator to confirm our signals from other indicators.
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