by Eliman Dambell
Ethereum mostly consolidated during Tuesday’s session, as prices continued to trade close to recent highs. Following a move to a three-week peak to start the week, markets maintained bullish sentiment, earlier in the day. Bitcoin also upheld recent momentum, with the coin remaining near its ceiling at $17,400.
Bitcoin (BTC) continued to trade close to the $17,200 level in today’s session, as traders moved to secure Monday’s gains.
Following a low of $17,162.99 to start the week, BTC/USD hit a high of $17,389.96 earlier in the day.
However, earlier gains have since diminished, with the world’s largest cryptocurrency currently trading at $17,271.27.
Looking at the chart, today’s price consolidation came as the 14-day relative strength index (RSI) continued to hover close to a key resistance at the 60.00 mark.
Despite the index currently tracking above this point at 60.89, price uncertainty has heightened, leading to previous bulls abandoning positions.
Traders may once again attempt to move beyond a price ceiling at $17,400, however this may come later in the week following the release of U.S. inflation data.
Ethereum (ETH) also moved into consolidation on Tuesday, as prices failed to break out of a key resistance point of $1,350 on Monday.
Earlier in today’s session, ETH/USD moved to a peak of $1,342.14, before then dropping to a bottom at $1,317.24.
Like with bitcoin, today’s consolidation in ethereum comes as traders opted to take profits, after the coin rallied to a multi-week high yesterday.
As can be seen from the chart, yesterday’s gain pushed ETH into overbought territory, leading to a slowing down of upward momentum.
Currently, the RSI is tracking at 68.08, which is its strongest point since late October, and close to a ceiling of 70.00
In order for bullish momentum to extend recent gains, this ceiling will first need to be overcome.
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Do you expect there to be further gains in price in the coming days? Leave your thoughts in the comments below.
Eliman brings an eclectic point of view to market analysis. He was previously a brokerage director and online trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.
Image Credits: Shutterstock, Pixabay, Wiki Commons
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