Ethereum is trading inside a rising channel on its 1-hour time frame and barely dipped to support before making another test of resistance. This suggests that bulls are eager to get back in the game and might be strong enough to push for an upside break.
Price found enough support around the mid-channel area of interest, which was near the moving averages’ dynamic inflection points. Speaking of moving averages, the 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. This means that the uptrend is more likely to continue than to reverse.
However, RSI is already dipping into overbought territory to reflect weakening bullish momentum. Stochastic is pointing up but also in the overbought region, which suggests that bears could still take over. In that case, another dip to the middle of the channel around $400-410 could be possible as this lines up with the 100 SMA dynamic support.
Geopolitical risk appears to be providing some support for cryptocurrencies as traders are reluctant to buy the dollar. There is threat of military action on Syria after an alleged chemical attack in Damascus over the weekend and escalating tensions could have repercussions on the US.
Besides, trade war fears aren’t completely out of the picture just yet. US CPI has also been weaker than expected, preventing the dollar from rallying strongly on more hawkish FOMC minutes.
As for ethereum itself, the cryptocurrency is higher on the launch of Golem on mainnet. This allows people to put their computer’s excess CPU power to use for other people, a project three years in the making. The current release should allow developers to find out if it is feasible to run with real money.
Golem works through a software client, which connects the two parties in the network – those that sell computational resources or providers and those that want to rent CPU power or requestors.