- Investors wait for the much-awaited surge towards the end of 2018 but consolidation still holding cryptos back.
- Ethereum breakout from the contracting triangle to launch missiles to $250.
- ETH/USD defends $220 support while primary support lies at $205.
Cryptocurrency investors anxiously wait for digital assets to complete the current consolidation and begin an upward roll towards the end of the year. Last year the crypto boom happened in the fourth quarter. While the parameters that led to the surge last year have changed immensely, cryptocurrency experts like Thomas Lee of Fundstrat still believe that Bitcoin and altcoins will retrace higher as the year comes to end.
Meanwhile, for Ethereum, last week’s stability above $220 has spilled into the new week. The trading over the weekend continued the formation of a contracting triangle pattern that is approaching a breakout in the short-term. ETH/USD is exchanging hands at $224, although it has achieved intraday highs of $225.63. The price is above both the 50 SMA and the 100SMA, both of which will work as support lines in case sellers take over control.
The brewing contracting breakout will face resistance at $226 and $230 respectively. There was a recovery in September that had ETH/USD touch $250 but widespread declines in the market led to declines to the primary support at $205. The buyers still have their eyes locked on this level but first it is essential that they continue keeping the support at $220.
Looking at the chart of ETH/USD, we see that the trend is ranging; a sitting duck waiting for either the bulls or the bears to strike. However, the MACD shows that the trend leans more to the favor of the buyers, similarly the RSI is trending at the 50 percent.
ETH/USD 1-hour chart-636745924217696266.png)
Share
