Ethereum (ETHUSD) Technical Analysis: Waiting for a Triangle Breakout

Ethereum has formed lower highs and higher lows to create a somewhat symmetrical triangle on its 1-hour chart. Price was rejected on a test of resistance and might be due for another move to support.

The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. This suggests that resistance is more likely to break than to hold or that support is more likely to hold than to break. Price would need to brush past the 100 SMA dynamic resistance to head any higher, though.

A return in selling pressure may be imminent as RSI is turning down from the overbought area to indicate that buyers are taking it easy. Stochastic, on the other hand, is still pointing up and has room to climb before hitting overbought levels. This suggests that buyers could stay in the game for a bit longer and push Ethereum higher.

A break past the triangle top around $220 could spur a rally that’s the same height as the triangle or around $60. Similarly a break below support around $200 could lead to a drop that’s the same size.

There has been a notable improvement in market sentiment over the past 24 hours as the US and China have imposed lower-than-expected tariffs on each other. The US imposed duties of 10% versus its earlier threats of 25% on $200 billion worth of goods, although the rate could still be increased by the end of the year if China refuses to cooperate.

Some pin the rallies on positive remarks from a Ripple exec on the regulatory environment, although these were made much earlier on. Still, this could be reviving hopes that the SEC might lean more favorably towards approving bitcoin ETF applications awaiting their ruling by the end of this month.

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