Ethereum might be done with its slide as it formed a small double bottom on the 1-hour chart and broke above the neckline as confirmation. The chart pattern spans around $30 in height so price could still have room to head north.
However, Ethereum also seems to be stalling at current levels and might be due for a pullback. In that case, price could retest the broken neckline around $470 before heading further up.
Then again, the 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. This suggests that sellers might still have the upper hand and push price much lower, possibly back until the bottoms near $440.
RSI has been hovering around overbought levels and might be looking to turn lower soon, reflecting a return in selling pressure. Stochastic already made its way down but is pulling back up again to signal that buyers are still putting up a fight.
Cryptocurrencies have been on more solid footing recently but it appears that bitcoin has taken most of the gains versus its peers. After all, the spotlight is now on the SEC decision on the bitcoin ETF on SolidX and approval could bring gains, although the impact on other altcoins like Ethereum remains to be seen.
Meanwhile, traders appear hesitant to buy up the dollar, despite strong data and Fed tightening prospects. For one, the uncertainty stemming from the Trump administration and the likelihood of trade tensions kicking back into high gear have been weighing on the currency. Apart from that, traders appear to be in the mood for more risk or higher yielding assets like stocks and commodities.
Looking ahead, market sentiment could continue to influence Ethereum direction, as the lack of negative industry updates could allow the rallies to be extended.