In this early-year rally, Ethereum (ETH) is on its way to break through $2,000. Currently, it is trading slightly below this psychological level. If the price closes this week in the red, there will possibly be an opportunity to buy the DIP.
Ether (ETH) continues its early-year rally
ETH made an impressive rise to start the new year. Indeed, this crypto is currently over 35% off the open of the year. The first three weeks were very favorable to buyers. Sure enough, this allowed Ether (ETH) to pull back above the $1500 territory. At this rate, it is highly likely to cross $2000. But for the moment, an obstacle remains insurmountable for 5 months. This is its opening price on the trading day. The Merge. The breakout of this level, around $1643, could be a strong bullish signal.
If the buyers continue to put upward pressure, it will be easy for Ether (ETH) to break through this level. Then, the crypto market, this year, seems to be in a bull market. Crypto traders can take advantage of this, by opening long positions in ETH. However, buying can be risky, when the RSI is in the overbought territory. Thus, it would be wiser to wait for a retracement, before positioning yourself as a buyer.
The price could look for the DIP
The RSI is currently above 70. So Ether (ETH) is overbought at the moment. Then, the price is currently bumping up against the $1600 level, which is a critical hurdle. Added to this, the volume begins to be low. All of this suggests that there could be a correction coming soon. Using the Fibonacci retracement tool, the area between the 61.8% and 78.6% levels is ideal for taking a buy position. Additionally, this area lines up with the $1420 support. There is also the potential crossover between the 50 and 200 day moving average in this range.
To take advantage of this bullrun, it would then be interesting to place a buy order on $1374. The stop will be placed below $1291. Then, the $2000 psychological zone can be the TP1 target for this Ethereum long position. If the rally continues, this crypto could reach $2700 within a few weeks.
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