Ethereum Tops $2.5K Resistance Zone Amid Overbought Conditions
Ethereum's price has reached the $2.4K-$2.5K resistance zone after breaking through a prolonged bearish structure and rising nearly 35% from its recent base near $1.9K.
This move broke through multiple levels of resistance, including the $2.07K-$2.15K area, and the descending trendline as analyzed by CryptoPotato on August 27.
However, Ethereum's daily relative strength index has entered overbought territory, indicating that the rally has become extended and may give way to sideways trading or a corrective decline if selling pressure increases.
A decisive breakout above $2.51K could indicate buyers remain in control and clear the way for further gains, while a retracement remains technically plausible with the first significant downside area between $2.22K and $2.31K.