Ethereum Price Breakout at Risk as Daily RSI Reaches Overbought Levels
Ethereum's price surged to an intraday high near $2,448 on August 21, extending its breakout driven by ETF inflows, short liquidations, and stronger risk appetite.
The cryptocurrency gained 3% to about $2,397, with over 20% growth in the past week. US spot Ether ETFs attracted $189 million on August 19, their largest inflow since October, while short liquidations added to the speed of the advance.
However, Ethereum's daily relative strength index (RSI) reached 86, placing it deep inside overbought territory, indicating a risk of pullback. A weekly close above $2,450 could expose the $2,500 and $3,000 levels, but analysts are watching for a confirmation.
The SEC's proposed framework for crypto assets, which would introduce tailored registration exemptions, has also added to the improved regulatory backdrop for US investors, further contributing to Ethereum's rally.