Ethereum price higher by as much as 13% this week.
New all-time highs will set a clear road map for the $5,000 value area.
Look for profit-taking to occur over the weekend if Ethereum becomes overextended.
Ethereum price faced a substantial number of sellers as it near its all-time highs. A decisive breakout beyond the all-time high is likely to continue as buyers target the psychological $5,000 value area.
Ethereum price halted near all-time highs, buyers cautious as the weekend approaches
Ethereum price attempted to continue its astounding bullish performance by repeating what Bitcoin has already accomplished: new highs. Plenty of the trading day still exists, and buyers may step in to rally Ethereum higher. However, the latter part of the trading day could trigger a bear trap and push Ethereum to new all-time highs.
The 100% Fibonacci expansion of the July 20th low of $1,721 to the September 3rd high of $4,028 is at $5,000, indicating bulls should have a relatively easy path to hitting that value area. Additionally, the 161% Fibonacci expansion from the same swing is near the projected new all-time high target in the $6,300 price zone.
Buyers will want to be cautious as Ethereum price enters Friday and into the weekend. Weekends are notorious for giving back much of the gains in cryptocurrencies, and Ethereum is perfectly positioned to see short-sellers capitalize on that behavior. The daily and weekly Ichimoku charts show current and expanding gaps between their respective candlesticks and the Tenkan-Sen. Within the Ichimoku Kinko Hyo system, gaps between the current close and the Tenkan-Sen do not last long before correcting.
ETH/USD Daily Ichimoku Chart
Further warnings of impending profit taking can be seen in the oscillators. The Relative Strength Index is approaching the first overbought condition (80), while the Composite Index could confirm regular bearish divergence – a warning signal for bulls. Most notably is the position of the Optex Bands, which will almost certainly be in the extreme overbought range on Friday, a likely trigger for some selling pressure.
However, if Ethereum makes new all-time highs, it enters into price discovery mode. That means the path of least resistance is higher, and there is no technical limit to how high Ethereum could go.
Remember: the market can remain irrational longer than you can remain solvent.
Source : https://www.fxstreet.com/cryptocurrencies/news/ethereum-fizzles-out-just-below-all-time-highs-but-bulls-still-target-5-000-202110211632476