Ethereum Price Key Highlights
- Ethereum price has formed lower highs and higher lows to create a symmetrical triangle on the 1-hour chart.
- Price is testing the top of the triangle and might be due for a bounce.
- Ethereum is also nearing the peak of the formation, so a breakout in either direction is also a possibility.
Ethereum is consolidating inside a symmetrical triangle pattern and is testing the resistance.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, resistance is more likely to break than to hold or support is more likely to hold than to break.
RSI is indicating overbought conditions, though, and turning lower could bring sellers back in. In that case, ethereum could follow suit and drop back to the triangle bottom near $280. Stochastic has some room to climb, so buyers could have the upper hand for a bit longer.
A move past the triangle resistance and $300 major psychological level could signal that an uptrend is underway. This might last by around the same height as the chart pattern, which spans $250 to $330.
Ethereum is joining most of its cryptocurrency peers in the recent pop higher, which is being pinned on investors anticipating the SEC decision on the ProShares bitcoin ETF application. This has been filed in December last year, so the regulator can no longer extend its deadline on the ruling for August 23.
Of course a denial could bring a blow to cryptocurrencies, forcing ethereum back down to the triangle bottom or even a break lower. Approval, on the other hand, could spur expectations of the same decision for the other bitcoin ETF applications due for a ruling by the end of September.