Ethereum seems to be having trouble sustaining its uptrend but continues to draw support. Price is above an ascending trend line on the 4-hour time frame and is also near an area of interest. Technical indicators are giving mixed signals at the moment.
The 100 SMA is safely above the longer-term 200 SMA on the 4-hour time frame to hint that the path of least resistance is still to the upside. In other words, the uptrend is more likely to resume than to reverse.
However, ethereum price is also treading below the 100 SMA dynamic support as an early signal of a pickup in selling pressure. A break below the trend line and area of interest could send it down to the next inflection point at the 200 SMA or $600.
RSI looks ready to turn higher without hitting oversold levels, which suggests that bulls are eager to charge again. This could take ethereum price back up to the highs at $850. Stochastic, on the other hand, is on the move down so price could still follow suit.
Roger Ver, who is dubbed ‘Bitcoin Jesus’, said that ethereum could surpass bitcoin as the most valuable cryptocurrency.
“I see it happening, and I believe it’s imminent,” Mr Ver said to The Independent. “Ethereum could overtake bitcoin by the end of the year and bitcoin cash could do the same before 2020.”
Ver talked about issues pertaining to bitcoin’s core technology that are weighing on transaction times and boosting fees. Besides, the Casper code peer review also marked a significant milestone for ethereum as it will switch the network from mining to proof-of-stake. Although it will start off with a hybrid approach, the later stage will rely on people’s computing power but be less energy-intensive.