ETH Over Extended?

The Ethereum price surged to a record high as the market reacts to the surge in demand for the digital currency. ETH rose to an all-time high of $3,070, meaning that it has gained by more than 320% this year and by more than 1,400% in the past 12 months. Its market capitalization has also surged to more than $353 billion, according to data compiled by CoinMarketCap.

Ethereum price has also surged because of the rising popularity of Non-Fungible Tokens (NFTs) since it is the network of choice for their development. Most importantly, Ethereum price surged because of the Fed, which decided to leave interest rate decision unchanged last week.

Today, looking at the daily chart, we see that the ETH price has been on a strong upward trend and now has come to my bands as you can see in the picture. It has risen for the past nine consecutive days. The price is also being supported by the short and long-term moving averages.

Therefore, in my view, we will likely see a short pullback as some bullish investors take profit. This will see it decline by double digits as bears target the lower side of the ascending channel. Still, this decline will be a positive thing as ETH remains on course to hit $3,500.