Ethereum is slowly climbing leading up to its next upgrade as it encountered strong support at the bottom of its channel. Price has formed higher lows and higher highs to create an ascending channel on its 1-hour chart.
The long spike suggests that bulls were quick to defend this area and might still be looking for another upside move to the channel top. The 100 SMA is above the longer-term 200 SMA after all, indicating that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. Also, the 200 SMA is holding as dynamic support for now.
In that case, ethereum could make its way to the $180 level at the very top of the ascending channel. There could also be some resistance at the mid-channel area of interest around $165. Also note that the gap between the moving averages is narrowing to signal slowing bullish momentum.
RSI is indicating oversold conditions, though, or that sellers are tired and may be willing to let buyers take over. Stochastic is already pulling up without even hitting the oversold region, confirming that buyers are about to push price up. Both oscillators have a lot of ground to cover before hitting overbought levels, so bulls might stay in control for much longer.
Ethereum’s Constantinople hard fork is due for January 16 so there could be limited volatility leading up to the upgrade as traders take off some positions leading to the event.
Price could resume its trend after the upgrade, depending on whether or not it goes smoothly. Take note, however, that developers already delayed this particular hard fork in order to have more time to fix errors on the platform so there are some concerns remaining.