ETH Price Hits Overbought Territory, Traders Await Shakeout
ETH's price has reached overbought territory at $2,501, and momentum has stalled. According to Lawrence Jengar, this indicates a potential shakeout before a more significant move upwards.
The chart shows that every major moving average is below the current price, confirming a structurally bullish trend. However, momentum has flatlined, with the MACD histogram printing zero, RSI at 76, and Stochastic %K above 90.
Traders are advised to wait for a controlled dip into the $2,426-$2,463 support cluster before buying. This zone is expected to hold on a daily close basis, allowing for a clean path through resistance at $2,552 and towards the upper Bollinger Band at $2,731 within 20-30 days.
The derivatives picture shows that retail positioning is dangerously crowded at 70.3% long, while top-tier traders are running 57.4% long. Taker flow is neutral, with a near-perfect 50/50 split between buy and sell volume.