Ether has started trending higher, after trading above the upward trend line connecting the latest lows. Prices have made another shift off this support zone, which formally lined up with resistance. Using the Fibonacci extension tool indicates the next potential upward targets. For example, the 38.2% extension is close to 775 USD and the 50% extension is situated at 800 USD. Stronger bullish pressure should move it to the 61.8% extension close to the 76.4% extension at the 852.48 USD level. The full extension is situated near the 900 USD level.
What's More?
We can see that 100 SMA is above the long-term 200 SMA in a safe position hence confirming that the path of the least resistance is via the upside. This also suggests that the upward trend is likely to be sustained than to reverse. Additionally, the 100 SMA held as dynamic support recently. The space between the shifting averages is widening and is beginning to reflect a strengthening bullish momentum. Stochastic has also started pulling up to indicate that there is buying pressure present while RSI is starting to turn higher without hitting any oversold condition. This means that the bulls are willing to charge once again.
A Decline in Price for Digital Coins
Virtual currencies took hits following bearish comments about BTC by finance moguls Bill Gates and Warren Buffet, dragging other virtual coins like Ethereum lower in the process. The geopolitical risk has weighed on investor risk as well in recent days. Some FOMC officials have shown their willingness to let inflation move past 2% before tightening more aggressively, suggesting more room for hikes in rates and growth.
Industry developments within the crypto ecosystem have been positive and fully supportive of long-term gains. However, in Ethereum's case, the meeting among US regulators regarding whether or not to classify the digital currency as securities is keeping jitters in play. The meeting is scheduled to hold this week with officials from the CFTC, and the SEC set to decide the fate of Ether (whether it should be regarded as security or not), which will ultimately have implications on the digital coin world.
