On Wednesday, Ethereum edged slightly lower, extending Tuesday’s pullback towards $4,730. The (ETH/USD) had spiked to trade above $4,800, setting a new all-time high. The pullback comes despite the news that Ethereum trading volume exceeded bitcoin (BTC/USD) for the second successive quarter in Q3.
The Ethereum blockchain platform’s native cryptocurrency is driven by the growing interest in Decentralised Finance (DeFi) and the rapid growth of the non-fungible token market. The platform sets the benchmark for building open source projects, thereby widening its addressable market.
Should you buy ETH now?
From an investment perspective, although Ethereum price edged lower on Tuesday and Wednesday, the trading volume increased by more than 10% over the last 24 hours indicating a significant rise in crypto investors interest.
Therefore, the pullback seems to be associated with some investors taking profits rather than a shift in the market sentiment from bullish to bearish.
Technically, Ethereum appears to be trading within an ascending channel formation in the intraday chart. As a result, the ETH/USD has rallied to the overbought conditions of the 14-day RSI, sparking the recent pullback.
However, with the price yet to retest the trendline resistance, investors could target potential rebound profits at about $5,026, or higher at $5,340. On the other hand, $4,487 and $4,161 are crucial support zones.
Not too late to buy?
In summary, although the ETH/USD has spiked to trade at new all-time highs, the bulls seem to have total control. Therefore, the recent pullback could be an opportunity to buy.
The post ETH/USD price forecast after overtaking bitcoin’s trading volume in Q3 appeared first on Invezz.
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