Ethereum Price Key Highlights
- Ethereum has formed lower highs and higher lows to create a symmetrical triangle pattern on its 1-hour chart.
- Price is currently bouncing off support and might be due for another test of the top.
- Ethereum is also nearing the peak of the triangle pattern so a breakout might take place anytime soon.
Ethereum continues to consolidate in a symmetrical triangle on its 1-hour chart and might be due for a breakout soon.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. This suggests that support is more likely to hold than to break or that resistance is more likely to break than to hold.
If the latter takes place, ethereum could climb by around $60 or the same height as the triangle formation. Similarly a break below support could be followed by a drop of the same height. Price appears to be finding resistance at the 100 SMA dynamic inflection point right now.
RSI is also pointing south to signal that sellers have the upper hand. A break below the 200 SMA dynamic support could signal that bearish pressure is building up and that more losses are in the cards. Stochastic is also turning lower without even hitting overbought levels,
ETHUSD Chart from TradingView
Investors seem to be on edge leading up to the SEC decision on bitcoin ETF applications as this would have big repercussions on the rest of the industry. Not only would this allow more institutional and retail money to flow in, but it would also set a precedent for other crypto-based securities. Meanwhile, analysts are also pointing to record high leveraged positions on ethereum, which could be indicative of a market extreme.
