Yerevan (CoinChapter.com) — Ethereum prices fell Thursday, paring a portion of its gains in the previous session as it maintained its correlation with an equally depressive Bitcoin.
The second-largest cryptocurrency was down 1.95 percent to $1,789 in the early New York trading hours. Its decline appeared mostly due to profit-taking sentiment across the crypto markets. Nevertheless, the ETH/USD exchange rate held key support, raising hopes of a rebound in the sessions ahead.
Looking closely, the pair entered a consolidation range defined by a Symmetrical Triangle. The technical pattern appeared during an uptrend, suggesting that Ethereum would likely attempt a bullish continuation move as it breaks above the Triangle’s upper trendline.
Nevertheless, the path to least resistance has roadblocks. ETH/USD looks to be inclined to test the lower Triangle trendline first as support before committing to a pullback towards the upper trendline, followed by an upside breakout. Meanwhile, a break below the support trendline risks crashing the pair inside the wide rectangle area below. Its extreme downside level is at $1,550.
But, since it’s a bullish continuation pattern, the likelihood of Ethereum surging higher is more. That said, a breakout above the Triangle’s resistance trendline could have traders eye sessional high of $1,944 as their interim upside target. A further push upward and they can extend their long positions to the Triangle’s primary upside target above $2,000—measured per the length of the upside move that took place before the Triangle formation.
Ethereum Fundamentals
Fundamentals support an upside theory for Ethereum. Last week, the blockchain co-founder Vitalik Buterin released a document discussing ways to accelerate the Ethereum 2.0 launch, an event that would upgrade Ethereum protocol from energy-intensive proof-of-work to a faster proof-of-stake.
Second, Ethereum continues to tail trends in the Bitcoin market. Its strong positive correlation with the top cryptocurrency ensures that it benefits from Morgan Stanley’s announcement of integrating three Bitcoin-enabled funds into its investment platform. Furthermore, the Federal Reserve’s decision to keep interest rates near zero until 2023 also provided tailwinds to the Bitcoin rally, which could end up raising the Ethereum prices, as well.
