Ethereum jumps a cool 5.6%: Double top pattern reaction impends

Ethereum is the strongest daily gainer on Friday and is leading the recovery in the market. As discussed earlier, the asset is still poised for a correction above $160. However, the buyers must brace themselves with the armor to battle the resistance at $158.

A venture capitalist recently shared his forecast of the crypto market where he says that digital assets will finally bottom out at some point in 2019. This move will allow the market to put an end to the extended downward trend reverse the trend into a bull-run. However, the founder of Union Square Ventures, Fred Wilson says that cryptos will continue to suffer under the rising pressures and even retest the lows.

Ethereum is among the best performers in the market at the beginning of 2019. It has not only regained position as the world’s second-largest digital asset, but it has also added at least 15% to its value since January 1. In addition to that, there was a correction above the Simple Moving Averages (15’ minutes 50-day and 100-day) which ignited more upside correction. However, failure to break past the resistance at $158 has resulted in the formation of a double-top pattern.

A reaction to the double-top pattern has led to a downside retracement where ETH/USD is exchanging hands at $156. The bulls must not allow Ethereum to drop past $154; a move that could retest the support at $150 - $148. The price is still above the Simple Moving Averages in the 15’ range. In addition to that, the Relative Strength (RSI) has changed direction upwards. Moreover, the Moving Average Convergence Divergence (MACD) has maintained its position in the positive region. A correction to the upside still looms since buying pressure still exists.

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Ethereum (ETH) defies bear market to stay in the green

ETH/USD 15’ chart