ETHUSD Unlocks 21-month High Just Shy of 3,000

• ETHUSD extends structure of higher highs
• Posts 21-month peak a tad below 3,000 psychological mark
• Momentum indicators point to overbought conditions

ETHUSD (Ethereum) has been developing within a bullish channel since late October, surging to consecutive higher highs. On Tuesday, the price leaped to a fresh 21-month peak of 2,984, but traders should be cautious as the momentum indicators are hinting at overbought conditions .

If buying pressures persist and the price storms to fresh highs, the bulls might attack the 2022 hurdle of 3,050. A break above that zone could open the door for the February 2022 peak of 3,250. Failing to halt there, Ethereum may advance towards the April high of 3,580.

Alternatively, in case of a pullback, the price may slide towards the January peak of 2,720, which could serve as support in the future. Further declines might cease at 2,450, a region that acted as support in March 2022 and coincides with the 50-day simple moving average (SMA). Even lower, the January bottom of 2,170 could provide downside protection.

In brief, ETHUSD’s rally has accelerated after the profound break above the 50-day SMA, with the price jumping to its highest since April 2022. However, the risk of a pullback is increasing as the short-term oscillators are starting to warn of an overstretched advance.