Ethereum has formed higher lows and higher highs to create a rising wedge formation visible on its 1-hour chart. Price is down to the wedge support that lines up with the 50% Fib where buyers might be waiting.
Bulls are defending the support at the $140 level and could take ethereum back to the swing high around the $147.50 mark or the resistance at $150. Stronger bullish momentum could even lead to an upside break and a rally that’s the same height as the chart formation, which spans $127.50 to $147.50.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside or that the rally is more likely to gain traction than to reverse. However, the gap between the indicators is narrowing to reflect weaker bullish momentum. A bearish crossover could increase the odds of a downside break and a selloff that’s the same height as the chart pattern.
RSI is still heading up to signal that there may be some bullish pressure left, but the oscillator also seems to be turning south so price might follow suit as sellers return. Stochastic is also turning lower without reaching the overbought zone, indicating that sellers are eager to return and push price down.
There haven’t been much updates on most cryptocurrencies, including ethereum, these days so it’s understandable that traders are holding out from larger bets. Bulls continue to defend support levels, possibly on optimism for institutional investments but traders are also getting noticeably wary on the lack of developments.
Further delays in this aspect could spur a wave of profit-taking as traders wait to enter at much better levels. On the other hand, any progress could trigger upside breakouts and rallies on FOMO.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Bitcoin News Bull or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
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