Ethereum Hits $2.5K Resistance Zone Amid Overbought Conditions

Ethereum is testing the $2.5K resistance zone after a significant 35% rally, leaving its momentum intact but pushing it into overbought territory.

The cryptocurrency has broken through multiple barriers on its way up, including a descending trendline and major moving averages, according to analysis published by CryptoPotato on August 27.

Now trading near $2.5K, Ethereum is facing resistance at the $2.4K-$2.5K range, with buyers still holding momentum but needing to absorb supply around current levels for the advance to continue.

The daily relative strength index has entered overbought territory after the sharp move, indicating that the rally has become extended and may give way to sideways trading or a corrective decline if selling pressure increases.