Ethereum ($ETH) is at an important stage determining its future direction. Price analysis suggests a potential short-term correction in the coming weeks.
Key Resistance Levels
To maintain its current bullish trend, ETH must reclaim and hold above **$3,850** on the daily (1D) chart. Failing that, a common corrective structure known as an **ABC correction** could target the **$3,100** zone. This would be a healthy retracement following the strong rally ETH has experienced, without damaging the broader bullish structure.
What Overbought RSI Means
On the 3-day chart, the **Relative Strength Index (RSI)** has entered overbought territory, typically signifying that the asset could be due for a pause or pullback. However, it’s important to note that an overbought RSI doesn’t guarantee a reversal; rather, it might indicate the need for a **consolidation phase** before the next upward movement.
Future Outlook
If the correction scenario plays out, it could set ETH up for a **strong rebound by the end of the month**, potentially leading to new highs and a solid **monthly close**. Monitoring the $3,850 level in the coming days will be crucial, as it may determine whether ETH requires a breather or is prepared to surge to new peaks.
In the next two weeks, Ethereum faces a significant test that could have a substantial impact on its price. Success in breaking above $3,850 or, conversely, dipping to $3,100 will dictate future movements of the cryptocurrency.
