Getting Started? Ether Sets New High Above $500

Having set fresh record price highs today, ethereum’s native token is looking to push higher.

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.

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.

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.

View

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.

Pause button image via Shutterstock

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Source: http://coindesk.com

CoinDesk is a news site specializing in bitcoin and digital currencies. Owned by Digital Currency Group.

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