Ethereum could be done with its slide as it forms an inverse head and shoulders pattern on its 1-hour chart. Price is still below the neckline, though, and would need a strong pickup in buying pressure to bust higher and sustain a climb.
The chart pattern is around $60 tall so the resulting uptrend could be of the same height. The 100 SMA recently crossed above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to gain traction than to reverse.
RSI is still heading higher and has some room to rise before hitting overbought levels, so ethereum might follow suit. Stochastic has turned lower from the overbought region, though, so a return in selling pressure may be in order. In that case, ethereum could still revisit the support around the moving averages.
Cryptocurrencies appear to be off to one of its better starts this week as there have been no negative updates over the weekend. Besides, the earlier one capped off with positive vibes from a report suggesting that blockchain industries could add $1 trillion in global trade over the next ten years.
Still, it’s worth noting that ethereum has been under pressure on ICO liquidation as most of these coins have been built using its protocol. With that, any slides in the industry tend to spur ICO profit-taking, which then take a heavy toll on ethereum price.
Looking ahead, further updates on institutional interest and the resumption of trading on Bitcoin Tracker One and Ethereum Tracker One that the SEC temporarily suspended could bring some support for ethereum price.