ETH/USD forecast: RSI approaching overbought territory

ETH/USD registers a fresh yearly high (2010) as it clears the opening range for April, with the recent strength in Ethereum pushing the Relative Strength Index (RSI) towards overbought territory.

ETH/USD Outlook

ETH/USD is on the cusp of testing the November 2022 high (2013) as it breaks out of the range-bound price action from earlier this week, and a move above 70 in the RSI is likely to be accompanied by a further advance in Ethereum like the price action from earlier this year.

An overbought reading in the RSI along with a break above the November 2022 high (2013) may push ETH/USD towards the former support zone around the January 2022 low (2160), with the next area of interest coming in around 2228 (50% Fibonacci extension) to 2316 (61.8% Fibonacci retracement).

However, failure to clear the November 2022 high (2013) may keep the RSI out of overbought territory, with a move below 1908 (61.8% Fibonacci retracement) raising the scope for a move towards the monthly low (1765).

--- Written by David Song, Strategist

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