ETH/USD: hovering below intraday highs.
- Stochastic RSI printed a bearish crossover;
- Bollinger Bands is still bullish;
- Deeper pullback possible before heading higher.
Although Ethereum is still bullish on the four-hour chart, and the coin managed to chart the highest daily close ever, chances for a deeper retracement are still high. Stochastic RSI has performed a bearish crossover in the overbought zone, which should lead to further retracement or a sideways consolidation at least. The Bollinger Bands %B indicator has bounced off the breakout zone but remained well above the middle level, which has to added to the bullish momentum.
The Ethereum price could show a similar scenario that happened twice recently (see two green arrows on the chart setup above). A bearish retracement could be limited by the 34-bar Exponential Moving Average as the bulls are looking for optimal depth before taking on fresh entries. Stochastic RSI has to reload the overbought values to continue the uptrend. Such a pullback could be considered as an attractive entry level for the buy-dips trading strategy as the long-term technical sentiment remains bullish.
R1: 4375.00 (all-time high);
R2: 4257.55 (recent peak)
S1: 4087.15 (EMA34);
S2: 4002.32 (daily static horizontal support).