Ethereum Climbs as Sentiment Improves for Cryptocurrencies, but Buyers Face the 100 Daily SMA
This week, major cryptocurrencies have turned bullish, making some decent gains, apart from BITCOIN. Ripple XRP has been leading the climb, gaining around 10% today, which has mainly been a result of a looming fork of the token. The sentiment is also being helped as traders and investors gear up for the launch of the US-based Bakkt bitcoin and cryptocurrency platform.
Although, Ethereum has another reason to rally. The ETHEREUM network processed the most activity in its history yesterday, which shows an increased interest for this crypto. The 20 SMA (grey) was providing resistance for Ethereum last week, as the price was trending down.
But, Ethereum opened with a bullish gap over the weekend and overcame the 20 SMA. The price has continued higher this week, but it ran into the 100 SMA (red) earlier today. This moving average turned into resistance immediately after the price moved below it and has done that job in the previous two weeks.
Today the 100 SMA is providing resistance again and the stochastic indicator is overbought on the daily chart. This looks like a chart setup for sellers to go short, since the larger trend is bearish and the retrace higher is complete. But, fundamentals are pointing up for cryptos, so this might not be the best time to sell Ethereum. If the 100 SMA breaks, then that would be a good opportunity to look for longs.
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