Ethereum on the way to $450 - Trade using Psychological Levels

In this technical analysis I will go into the most important things that are happening to ETH/USD right now from a technical point of view.

First of all we see that the RSI is extremely overbought. Meaning that the momentum is insanely high. We've just seen an increase from the $400 to the $430 level in no-time.

Often times, this is unsustainable. Hence the *over*bought part. It is logical that the price will retrace. I think a logical moment for that presents itself by means of psychological levels.

As a brief summary, psychological levels are all incredibly round numbers, which match perfectly to the levels of support and resistance. You can see human trading behavior at work here, along with human psychology. This is exactly where humans would put their limit orders, or where they will put price alarms.

$430 is such a psychological level, and I think when the price reaches this level we will have to be extra careful. It will either cool down and bounce from this level, or it will increase again and we might see a surge to new highs all the way up to $450 in a short time.

ETH by itself will probably not have the power to beat the $430 level, but will need an entire momentum from the market to do so.

In this analysis I show a price pattern that could happen if the entire market continues its bullish uptrend and the price breaks through $430. I believe that after some struggle it is actually likely that the price will break through the resistance here.

Again, first it will need to cool down a little bit, and then the entire market needs to help Ethereum, so it's a bit of a stretch but I believe it's likely that it will happen.

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- Trading Guru

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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!