Ethereum (ETH/USD) has been in a sharp correction since "mooning" to $1400 in January. This happened after price broke out of a 6-month long triangle, which we can see on the daily chart below.
ETH/USD Daily Chart
- $420 will be a key level for ETH/USD.
- This is a support/resistance pivot and with the RSI below 30, the market might see this as an oversold situation.
- The upside however, is not clear.
- After such a wild speculative rally in December and January, we should probably anticipate a long period of consolidation.
- In this scenario, we should limit expectation of upside to $800.
- On the other hand, a break below $420 could extend the correction to $300.