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Ethereum appears to be completing a complex double bottom pattern to signal that longer-term gains are in the cards. Price has yet to test and break past the neckline around the $170 mark to confirm that a rally is due.

The 100 SMA has crossed above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the climb is more likely to gain traction than to reverse. Then again, it might be early to tell if the moving averages are making a bullish crossover or merely oscillating to reflect consolidation.

RSI is already in the overbought zone to signal that buyers are tired and might let sellers take over. In that case, ethereum could still make a correction to nearby support areas like the dynamic support at the moving averages. Similarly stochastic is indicating overbought conditions or exhaustion among buyers.

Ethereum and its cryptocurrency peers are on stronger footing these days, though, possibly buoyed by market expectations for stronger volumes and increased volatility on the Fidelity institutional platform. This is said to be ready to launch in March or next month, so traders might be rushing in to place their bets for fear of getting left behind on the climb.

If ethereum is able to bust through the neckline, it could see a rally that’s the same height as the chart formation. The double bottom spans around $90 to $170 so the resulting climb could be at least $80 or until $250.

Some of the upside momentum for ethereum may be once again be driven by the Constantinople hard fork estimated for March 1. Keep in mind, however, that this has been delayed a few times on glitches found by developers before the actual upgrade. Pushing through this time could spur even stronger demand for the digital asset.

(Excerpt) Read more Here | 2019-02-19 03:47:31


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