Stepping back a bit, this is a sharp reversal from mid-September when prices had fallen almost 50 percent to near $200 levels. However, they soon regained the bid tone – supposedly on the back of the sharp rally in bitcoin prices.
The big breakout above $320 happened earlier this month, and as of now, ETH is up a staggering 7,000 percent on a year-to-date basis.
As per CoinDesk’s price index, ether (ETH) moved above $500 at 12:35 UTC and hit an all-time high of $522 soon after. Data from CoinMarketCap shows ETH has appreciated 8.74 percent in the last 24 hours.
Having set fresh record price highs today, ethereum’s native token is looking to push higher.
So, will the rally continue? The price action analysis suggests ether bulls could have a breather around $500 levels in the short-term.
The above chart shows:
- Ether is overbought as per the relative strength index (RSI).
- The first attempt to take out the resistance ($514.52) offered by 161.8 percent Fibonacci extension level has failed.
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Most analysts/traders consider 161.8 percent Fibonacci extension a major target or resistance level. The fact that ether is showing signs of exhaustion around that hurdle, at a time when the RSI is screaming overbought conditions, indicates prices could consolidate around $500 levels for the next few days.
The 10-day MA is sloping upwards, suggesting dips below the same are likely to be short-lived.
