Ethereum (ETH) continues a slow consolidation with a slight upward trend on the USD paired chart, which seems bound to retest the local resistance at $175 within a matter of days. Tests of this level during the weekend quickly fizzled out on very tepid volume.
$175 marks the beginning of a local ranging channel, which was in play from April 7 to 11, and whose upper limit was about $183. Reentering this channel will be necessary in order to retest and break $183 - some analysts and chartists think that Ethereum still hasn’t got its big pump of the season, in the fashion of Litecoin, Bitcoin Cash, and even Bitcoin itself.
Ethereum is in general riding uptrend support consistently, on falling volume, a sign of consolidation. The second crypto has room to oscillate down well into the $160 range. Breaking $163 would not be ideal, but also not a disaster - the must hold area is around $156. Falling below here would invalidate the consolidation pattern.
Stepping back to the daily chart, we can be reminded that the general ETH trend still looks bullish: ETH broke out of a very strong resistance at $156-8, which is why it is so important to hold this level. Falling back below would invalidate the breakout, and be essentially disastrous for bullish case.
The ETH/BTC pairing doesn’t look quite as good. While the April 2 Bitcoin explosion likewise inflated ETH’s USD price, it also crippled its Bitcoin price.
Unless a complete disaster comes for Ethereum, the local trend seems bound to reverse. A chopping slog upward to the 0.034 BTC price level seems likely, which would have ETH/BTC helping the overall bullish ETH/USD rather than hindering it.
There is not much price history to snag on between 0.033-34, so this zone should be less trouble to traverse.
Having said all that, a Bitcoin breakout above $5.3K could provide a more dramatic energy to Ethereum, and pull it out of its lazy churning.
(The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.)