Technically, the hourly chart is pointing extreme overbought conditions and suggesting caution.
ETH/USD New High
There was another push in Ether price against the US dollar during the past 24 hours, as the bulls took over. The ETH/USD pair managed to break a couple of important resistance levels during the recent upside drift, including the $13.00-20 handle.
Yesterday, I highlighted that there is a chance of a new weekly high in ETH/USD. The pair did climb higher and not only posted a new weekly high, but also broke the monthly high. A new high is formed at $13.94, and it looks like the ETH buyers are not done yet.
There was a resistance trend line on the hourly chart of ETH/USD, which was broken during the recent upside ride. The same trend line may now act as a support if the pair moves down from the current levels. Moreover, there is also a bullish trend line on the downside, waiting to provide support.
The technical indicators on the hourly chart are highlighting extreme overbought conditions, which may result a minor correction. In that case, the 23.6% Fib retracement level of the last wave from the $11.91 low to $13.94 high might act as a support area.
When we look at the bigger picture, the daily chart of ETH/USD suggests that the pair is trading near a major resistance band area. So, there is a possibility that we may witness a reaction in ETH/USD around $14.00. The price may correct sharply lower if the highlighted resistance manages to contain gains in the short term.