Ethereum could see a reversal from its downtrend soon as a complex double bottom pattern has formed on its 4-hour time frame. Price was rejected on the attempt to break above the neckline around $170, so another bottom might still form.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This means that the uptrend is more likely to gain traction than to reverse. Then again, the moving averages might simply be oscillating to reflect further consolidation.
RSI seems ready to pull up after a brief dip to the oversold region, indicating that bullish pressure could return from here. Stochastic is also turning from the oversold region to reflect exhaustion among sellers and a likely return in bullish momentum. A break past the neckline could be followed by a rally that’s the same height as the chart formation, which spans $75 to $175.
Ethereum could consolidate for a while as traders wait and see how the Constantinople upgrade turns out. This promises a lot of improvements for the network but has been delayed in a couple of instances on vulnerabilities that developers spotted. These issues have been addressed since and the hard fork will be pushing through, although many can’t help but worry that there may be glitches involved.
A successful upgrade, on the other hand, could give ethereum superior features versus most of its peers and therefore attract more interest from developers and companies. Apart from that, the launch of Fidelity’s institutional platform would also include ethereum and likely drive volumes and volatility for this digital asset, too.
If all goes well, ethereum could be able to push for steady gains on increased volumes and an overall improvement in cryptocurrency market sentiment.