Cryptocurrency Ethereum (CRYPTO:ETH) has crossed the $3,000 level, but it’s now overbought. That means there a good chance it goes into another period of consolidation.
Overbought refers to momentum. It’s a measure of how far a security has moved in a certain period of time. When it reaches an extreme above its recent average trading range, it’s considered overbought.
As you can see on the below chart, the last time ETH was as overbought as it is now was on April 15. A small sell-off followed and that could happen again.
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