Ethereum is still trending higher so far, making higher highs and higher lows inside an ascending channel pattern. Price is currently testing support and might be gearing up for another breakdown.
However, the 100 SMA is crossing above the longer-term 200 SMA to suggest that the path of least resistance is to the upside. This suggests that support is more likely to hold than to to break. It also helps that the moving averages are close to the bottom of the channel to add to its strength as support, but ethereum is trading below both dynamic inflection points at the moment.
RSI is pointing down to signal that sellers are returning without seeing overbought conditions, reflecting eagerness on their part. Stochastic is on middle ground but is showing intent to turn lower, also indicating that bears could have the upper hand. Note that ethereum is coming off a selloff before the channel formed, so this might turn out to be a bearish flag formation.
Ethereum is under pressure after its network upgrade was delayed in a couple of instances. Developers have also elected to delay the decision to submit the code reducing the benefits of high-power ASIC miners who are competing for rewards from the network.
A public conference call with the likes of Hudson Jameson, Martin Holst Swende, Lane Rettig, Afri Schodedon, Danno Ferrin and Greg Colvin resulted in a tentative decision to postpone the ProgPow upgrade to conduct continued audits. Colvin explained:
“We are already very tired of this. I would decide today with joy, but it’s not up to me. However, I’m happy to wait for the third party audit, but I’m unhappy about making a final decision in May. A large number of people would want to know when so that they can get on with other commitments. Am I going to use $1,000 to buy multiple CPUs or not?’”