Ethereum got off to a strong start by gaining $44.84 (+2.79%), only to run out of steam later in the session around $1,658.63. Currently, Ether is trading around the $1,651.84 level.
Chart analysis suggests Ethereum reversed direction at $1,654.83 resistance zone and retreated back $3 below it. Trend-focused traders would be interested to note that Ether made an initial breakout above its 21 day Simple Moving Average at $1,618.32, a potential indicator of a newly emerging bullish phase. Analysis based on the asset volatility indicates that Bollinger Band® analysis indicates that current price action is approaching the upper band at $1,746.2, thereby suggesting that Ethereum is becoming overvalued.
Overall, the technical outlook suggests Ether is likely to remain muted for the immediate future, with no clear-cut direction.
Other markets are also showing gains as FTX Token soars 9.54% to trade around $1.36. EOS is up 3.83%. Litecoin climbs 3.48% to trade around $97.24.
This year has been a bright one for Ether after trading as low as $993.77 and going on to appreciate by 37.91% year to date. ETH has a market cap of 202.14 billion with an average daily volume of 6.90 billion.