Ethereum was previously lower than a downward channel, but has recently been eliminated through the top to signal that an inversion is under way. The price also passed beyond the dynamic inflection point of 100 SMA to indicate that the bullish momentum is increasing.
However, 100 SMA is below the 200 long-term SMA to suggest that the path of least resistance is downward. In other words, there is still a chance that the downward trend may resume. The 200 SMA could also resist as dynamic resistance when tested.
Still, ethereum has formed a double bottom model and is due to test the neckline around $ 120. A break above this could confirm that a climb that is around the same height as the inversion model is going to take place.
RSI is aiming towards the top to reflect the presence of bullish momentum, but is already plunging into the overbought zone. Turning lower could signal a return to sales pressure and a possible return to the inside of the channel. Stochastic also indicates overbought conditions and turning south could lead ethereum to follow the example.
There have been some positive developments in the sector, in particular reports indicate that institutions are good to proceed with space investments despite the bear market. Recall that the recent selloff has mitigated the hopes that big banks and funds could invest more money in the crypt – something that was widely expected to introduce a major price rebound.
Furthermore, sources have revealed that Nasdaq Inc. is proceeding with the intention of launching BTC-based futures contracts. According to a report on Bloomberg:
Nasdaq worked to meet the concerns of the main US swap regulator, the Commodity Futures Trading Commission (CFTC), before launching the contracts.
The New York exchange operator, who was first reported to look at Bitcoin futures last year, wants to allow trading in the first quarter of 2019.
This has led to an improvement in the sentiment for the industry, stimulating the upside disruptions for bitcoin and ethereum.