Ethereum Climbs, but Will the Downtrend Reverse? - Forex News by FX Leaders
The downtrend will be in place until Ethereum moves above recent highs

Ethereum Climbs, but Will the Downtrend Reverse?

Posted Tuesday, July 17, 2018 by
Skerdian Meta • 1 min read

Cryptocurencies made a turnaround yesterday and Ethereum followed the pack higher. Ethereum gained around $50 as the main cryptocurrencies accelerated their climb yesterday. The reason for the surge was that the giant hedge fund BlackRock announced that they would start investing in cryptocurrencies, or at least consider them as they formed a team for altcoins.

So, digital currencies have come off their lows and that is a positive sign. But, the major downtrend is not over yet. We see that the stochastic indicator is headed towards the ceiling of the window, which means that it will be overbought soon.

Besides that, there are two moving averages waiting for Ethereum above. The 50 SMA (yellow) and more importantly the 200 SMA (purple) are waiting above. The 200 SMA has provided support previously and now it is expected to turn into resistance.

So, the downtrend is not over yet for cryptos and the buyers face a tough challenge. If they manage to push above the two moving averages, then we might consider a trend reversal seriously, until then, the trend remains bearish.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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