Trader: Ethereum Can Hit $440 But Indicator Warns Altcoin ‘Overbought’
Trader: Ethereum Can Hit $440 Only Indicator Warns Altcoin 'Overbought'
"Serious resistance" should trigger above $400 as General Strength Indicator suggests Ether is at its most overbought since May 2019.
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Ether (ETH) price could continue its gains to hit $440 before resistance kicks in, one analyst has told mainstream media.
Speaking to Bloomberg on Feb. 14, Edward Moya, senior market analyst at online forex broker Oanda Corp, warned that the largest altcoin's huge gains in 2020 were at present looking unstable.
GSI flashes bearish for ETH
ETH/USD has more doubled since Jan. one, rise from $130 to press time levels of more than than $270 — a seven-month high, data from Coin360 and Cointelegraph Markets shows.
This month, information technology emerged that accredited investors in Grayscale's Ethereum Trust were paying up to 300% premiums for tokens.
"It is center-opening the little run information technology has put together," Moya said.
He added that he expects "strong resistance" to kick in at around $440 should bullish momentum continue.
Standing, Bloomberg highlighted Ether's General Force Indicator (GSI), a metric demonstrating whether an asset is overbought or underbought.
Currently, GSI is flashing bearish — a score of 92 this week is far in excess of the minimum 70 which designates "overbought" status.
Ether GSI index and 1-year price nautical chart. Source: Bloomberg
Altcoin investors reap gains
Ether is just i of the major altcoins which have seen major appreciation in contempo weeks. Equally Cointelegraph reported, Tezos (XTZ) forms the standout for investors this month, while Neo (NEO), Cardano (ADA) and XRP accept also performed strongly.
This "alt season" has caught many commentators by surprise — as 2020 began, information technology was Bitcoin (BTC) which showed the most potential.
The largest cryptocurrency has gained over 40% twelvemonth to engagement, topping out at $x,500 before encountering a resistance level of its ain this week.
Source: https://cointelegraph.com/news/trader-ethereum-can-hit-440-but-indicator-warns-altcoin-overbought
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