After strong moves in the previous month, Ethereum is now consolidating inside a symmetrical triangle pattern as bulls wait for a catalyst. The coin’s price is approaching the peak of the formation so an Ethereum (ETH) price breakout might be due soon.
The 100 SMA is above the longer-term 200 SMA to hint that the path of least resistance is to the upside. In other words, an Ethereum (ETH) price breakout might be more likely to take place than a downside break. According to the daily chart’s pattern, the increase is around $80 Sq and the resulting move could be of the same size.
Previously, a low had been formed at $268.18 before the price started an upside correction. An initial resistance is near the 23.6% Fib retracement level of the last drop from the $307 high to $268 low. However, there might be a stronger barrier near the $268-270 zone. Also, there is a major bearish trend line in place with resistance near the $287 level. Nonetheless, if buyers are strong enough to push the coin’s price past this level, more bullish energy may be generated.
Ethereum’s adoption has continued to increase due to the platform’s ability to process transactions more quickly and cheaply than its rival. There are more projects being built on there and more programmers, as such, the coin is heading in the correct direction. Recently, the cryptocurrency market has been quite volatile as the pickups in stocks and commodities seem to have drawn traders back to traditional markets. The improvement in sentiment in global financial markets is being attributed to the upcoming trade talks between the US and China this week, with many in the cryptocurrency industry hoping that the next set of tariffs could be avoided.
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