Ethereum is moving past a small descending trend line but could still find resistance at its longer-term falling channel top. Price has been trading inside this channel since mid-February and the 100 SMA lines up with the resistance.
This moving average is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, the downtrend is more likely to resume than to reverse. The gap between the moving averages is also widening to reflect stronger selling pressure.
Stochastic is moving up to indicate that buyers have some energy left in them but this oscillator is nearing overbought levels to reflect exhaustion. RSI has more room to climb so bullish momentum could stay in play until this oscillator also hits overbought levels.
So far so good for cryptocurrencies as the G20 Summit didn’t really contain much negative headlines on the industry. World leaders have pledged to keep a closer eye on developments but stopped short of calling for tighter regulation.
Meanwhile, the dollar has the FOMC decision to contend with as a dovish hike could still mean losses for the US currency. It will be Powell’s first post-FOMC presser so traders are interested to hear about his views on monetary policy and inflation.
In one of his previous speeches, Powell mentioned that headwinds to the economy have turned into tailwinds, so there’s reason to believe that he might be optimistic. Then again, this opens up a lot of room for disappointment, especially if there are downgrades to economic forecasts or if the dot plot shows fewer than expected hikes for the rest of the year.
As always, risk sentiment could push ethereum and its fellow altcoins around, and the presence of some geopolitical risk could also lead to gains.