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Ethereum Price Key Highlights
- Ethereum has formed lower highs and higher lows to consolidate inside a symmetrical triangle.
- Price is approaching the peak of the formation so a breakout could be due anytime soon.
- Technical indicators appear to be hinting at a potential upside break and rally.
Ethereum is currently consolidating inside a short-term symmetrical triangle with the possibility of an upside break.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. Price is still below the moving averages, after all, so sellers are in control.
However, the gap between the moving averages is narrowing to signal a potential upside crossover. In that case, bullish momentum could kick in an sustain a rally in the event of a break higher. Ethereum would also need to break past the 200 SMA dynamic inflection point just above $500 to confirm an uptrend.
Stochastic looks ready to move back up without even hitting oversold conditions. This signals that buyers are eager to return and push ethereum back up. RSI is already on the move up after making its way out of the oversold region, indicating that bullish pressure is present.
Market Factors
Ethereum drew strong support from remarks by an SEC official citing that it is not a security to be regulated like stocks or bonds. Although this isn’t an official ruling yet, many are hopeful that this particular altcoin can evade strict regulation.
However, dollar strength is being tough to contend with as safe-haven demand picked up when the US and China imposed tariffs on each other’s goods. This could mean weaker demand for commodities and slower business activity, thereby dampening global growth prospects and investors’ appetite for risk.
