Walking alongside Bitcoin, Ethereum price was actually able to recover $3,000it will grow faster than expected over the weekend. This resulted in a daily gain of over 6% through Sunday, and sentiment began to move towards positive territory again. However, the move hasn’t completely removed bearish expectations surrounding the cryptocurrency, especially since one cryptocurrency analyst points out that the digital asset has actually reached overbought levels right now.

Ethereum in threatening territory

In the TradingView post, SignalProvider cryptocurrency analyst highlighted that Ethereum has now entered an overbought level, which is unfavorable for the price. As the analyst explained using the ETheruem -Hour time frame, the trend is currently down as the 7-period RSI shows that the digital asset is currently at an oversold level.

This comes as Ethereum’s price continues to hold above $3,100, which the analyst calls a solid horizontal structure. However, this structure did not hold as strongly as expected, leading to a weakening market. As a result, the cryptocurrency analyst explains that this could result in a drop in prices.

If the decline continues as expected at overbought levels, the analyst says the first target will be $3,028. This can then serve as a support level that can start another uptrend. However, there is a possibility that this will not happen soon because prices have reached overbought levels may take some time to play.

ETH price is not completely bearish

While entering overbought levels remains a bearish signal for Ethereum price, another analyst stated this presented hence a possible bullish path for the cryptocurrency. This relies on the bulls’ ability to completely break out of the $3,100 level.

As cryptocurrency analyst TheSignalyst explains, the lower boundary of the channel serves as support for the Ethereum price above $3,000. If this channel continues to hold, the uptrend will remain intact. “From a structural perspective, ETH remains bullish, trading cleanly within a flat rising channel,” the post reads.

Once the breakout is complete, the price could go as high as $3,600, which is the high current ascending channel. However, TheSignalyst explains that until this breakout occurs, Ethereum investors should expect more sideways movement as the price continues to rise.

Featured image from Dall.E, chart from TradingView.com