Ethereum continues to advance and has just climbed past the closest resistance level at the 38.2% Fib. Price could test the next inflection point at the 50% Fib then the 61.8% level closer to a descending trend line.
This also happens to line up with a former support and potential resistance at the $250 level. Note that the 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside or that the selloff is more likely to resume than to reverse. Then again, the gap between the two is narrowing to signal a possible return in bullish momentum.
In that case, Ethereum might be able to push past these resistance levels and aim for the swing high around $300 next. However, RSI is already indicating overbought conditions and is turning lower to signal a return in selling pressure. Stochastic also looks ready to head south after a few days’ stay in the overbought zone, signaling a return in selling pressure also. If so, Ethereum could revisit the swing low or push lower.
Ethereum suffered a sharp tumble earlier own when its very own co-founder, Vitalik Buterin, cited that the industry might be hitting a ceiling. Many took this to mean that he didn’t see further upside for cryptocurrencies but he clarified on Twitter that his remarks may have been misinterpreted.
This altcoin managed to pull up somewhat after this clarification, but the momentum picked up only after a few positive updates came out. For one, it was rumored that Morgan Stanley is prepping to offer bitcoin swaps to clients, renewing the attention on institutional interest. To add to that, the WEF released a report estimating that digital ledger technologies would add $1 trillion to global trade over the next ten years.
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