Ethereum broke past its descending trend line on the 4-hour time frame to signal that an uptrend is underway. However, technical indicators have yet to catch on, so a pullback to the broken resistance is still a possibility.
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 could still resume from here. However, the gap between the moving averages is narrowing to signal weakening bearish pressure and a potential bullish crossover.
The 100 SMA is close to the broken trend line and might act as dynamic support from here. This also near the 61.8% Fibonacci retracement level around $450. The 200 SMA is closer to the 38.2% Fib at $474.
Stochastic is turning down from overbought conditions to show that buyers might want to take a break and let sellers take over from here. Similarly, RSI is turning lower to signal a pickup in selling pressure as well.
Cryptocurrencies were generally higher throughout the weekend as the tax filing deadline is about to pass and traders are anticipating a strong rally as investors reopen their positions. Apart from that, the pickup in geopolitical risk stemming from military strikes on Syria both weighed on the US dollar and led to a rise in non-traditional assets like ethereum.
Besides, the recent Golem launch appears to have generated enough positive momentum for ethereum. Golem markets itself as the Airbnb of computers, allowing users to rent out unused CPU power to those who are looking to make use of more.
For now, though, Golem is in Brass Beta phase and is being used through Blender an open-source software for animated films, visual effects, interactive 3D applications and video games. If the concept proves feasible and scalable, ethereum could be poised for a stronger climb from here.
*The market data is provided by TradingView.