Ethereum is trading higher in an ascending channel and has just bounced off the top. A pullback to support may be in order and a bounce could happen as this lines up with the Fib levels.
In particular, the 61.8% level is in line with the channel bottom around the $210 mark. The 50% Fib is closer to an area of interest or former resistance that might now hold as a floor, as well as the 100 SMA dynamic inflection point.
On the subject of moving averages, the 100 SMA is safely 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. The gap between the moving averages is also widening to reflect stronger bullish momentum.
Stochastic is on the move down, though, so sellers still have some energy left in them for more declines. Then again, this might simply mean that the correction could go on for a bit longer. The 200 SMA dynamic support might be the line in the sand, as a break below this could signal a continuation of the longer-term slide. RSI is also heading south so ethereum price might follow suit.
Cryptocurrencies had been off to a good run so far this month, but it’s understandable that traders are also quick to book profits at key levels. With that, retracements are in order and it’s likely that bulls are just waiting to add to their positions at better prices.
Ethereum is looking ahead to the SEC guidelines on ICOs which might hopefully weed out fraudulent ones and assure legitimacy of the rest. This could prevent quick liquidations of tokens built on the ERC20 platform, which then lead to a corresponding drop in ethereum price.
