Ethereum Price Analysis: ETH/USD Ready for Another Support Test
Ethereum is trending higher on its 1-hour time frame as it formed higher lows and higher highs to create a rising channel. Price just bounced off the resistance and might be due for a test of support around $380.
Price seems to be finding some buyers around the mid-channel area of interest near the $400 psychological level, though, and a return in bullish pressure could lead to a move back to the top at $430.
The 100 SMA looks ready to cross above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse, which means that nearby support areas could keep losses in check. The moving averages might hold as dynamic inflection points as well.
However, stochastic looks ready to turn lower from the overbought region to reflect a pickup in selling pressure. RSI also seems to be on its way down but might be changing its course halfway through, so there’s still a chance for bulls.
The mood in the cryptocurrency industry was lifted somewhat by reports of the Soros Management Fund making preparations to invest in the space as this could represent a nod of approval from market guru George Soros who previously said that bitcoin is in a bubble.
However, risk-taking appears to be dampening demand for ethereum and other altcoins recently as traders might be putting funds back in commodities and stocks. Apart from that, the looming tax deadline later this month has prompted widespread profit-taking among investors.
As for ethereum specifically, the release of Bitmain’s E3 Ethereum ASIC has caused many in the community to voice outrage on a potential hard fork. According to EIP 958, this could thwart ASIC development long enough to implement Casper.
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