Ethereum Price Key Highlights
- Ethereum price recently broke out of a small symmetrical triangle but has slumped back in consolidation.
- A larger symmetrical triangle has formed and is still intact while price tests support.
- Technical indicators suggest that the floor might still hold, but bullish pressure seems to be fading.
Ethereum recently attempted to break past the $300 mark after a triangle breakout, but it has slumped back to consolidation.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA on this time frame to signal that the path of least resistance is to the upside. This suggests that support is more likely to hold than to break.
However, the gap between the indicators is pretty narrow so there could still be a chance of a bearish crossover and downside break. In that case, ethereum could fall by the same height as the chart pattern, which spans $250 to $330.
RSI appears to be crawling lower to indicate that selling pressure is present while stochastic is also pointing down so ethereum price might follow suit. A bounce could still happen and lead to a test of the triangle top at $300, though.
Ethereum has been under pressure due to speculations of a pickup in bearish positioning with the pending launch of futures on CBOE. Many point to the massive slide in bitcoin after futures were launched by CME and CBOE late last year, predicting that ethereum could suffer the same fate.
Besides, the Satis ICO research group forecast for ethereum wasn’t nearly as bullish as that for bitcoin, so it’s understandable that traders may be moving their holdings out of this digital asset. Note that ethereum is still reeling from the sharp August drop, which is being pinned on ICOs cashing out earlier on.