Ethereum: Buyers’ market despite uncertainty caused by symmetrical triangle

On 23 October, the price of the second-largest coin by market cap, ETH witnessed a six-month low as it dropped to $157.51 for a brief period of time. However, the coin was recovering, as it breached $190. Despite the significant surge the price of the altcoin was seen trading for a low of $176.29, today.

While almost the entire crypto market was seen painted in green, ETH followed suit by recording a 0.31% increase in its price over the last 24-hours. At the time of writing, the price of ETH was seen at $181.30.

Ethereum 1-day chart

Source – ETH/USD on Trading View

Ethereum formed a symmetrical triangle pattern in its one-day chart which is identified by a series of lower highs formed at $224.31, $222.15 and $184.77 along with higher lows at $162.56, $167.43 and $174.55. The direction of the breakout seems uncertain due to the formation of a symmetrical triangle pattern.

However, the 100 moving average was seen above the 50 moving average further indicating a bearish scenario in the ETH market. The 100 moving average in the above-seen chart has been standing as resistance since mid-June as it previously acted as support for the altcoin.

Source – ETH/USD on Trading View

The key indicators spun a different story as key indicators like MACD as well as RSI hinted at the weak presence of bulls in the ETH market. The MACD line was seen sluggishly climbing over the signal line revealing a bullish crossover. Also, the Relative Strength Index aka RSI seemed to be heading towards the bullish zone as the RSI line was at 52 median.

Conclusion

Despite the uncertainty of the direction of the breakout, key indicators seem to be welcoming the bulls into the market.