Ethereum is consolidating into a symmetrical triangle and may soon explode.
After the strong moves of the previous month, Ethereum is now consolidating itself into a symmetrical triangle pattern of bulls and bears waiting for catalysts. The price is approaching the peak of the formation, so a breakout could soon arrive.
The 100 SMA is above the 200 long-term SMA to indicate that the path of least resistance is upward. In other words, an upside break may be more likely to happen than a bearish breakdown. The chart is about $ 80, so the resulting move could be the same size.
CSR appears to have slowly subsided, indicating that sellers have the upper hand. This could lead to a break below the $ 290 triangle, which is also located around the dynamic inflection point of 200 SMA. Stochastic was rising to show the presence of buying pressure, but it also seems to refuse.
Ethereum struggled to maintain his position after breaking below the key psychological level of $ 300. Buyers should be strong enough to push the price beyond this level to tap more bullish energy and sustain any rally.
The recent fall was aimed at collecting ICOs while most of the tokens recorded consecutive declines. And since the ERC-20 tokens were primarily used for the creation of ICOs for financing purposes, the collection activities resulted in the sale of Ethereum.
There may be a need for a resumption of cryptocurrency prices to restore the demand for Ethereum, as well as improved risk-taking. Traders are watching Turkey and potential contagion, as this could also raise demand for alternative assets such as digital currencies. This was the case where capital controls were imposed on Greece a few years ago, as people were looking for a better deposit of value or medium of exchange than a rapidly declining currency.