Ethereums (CRYPTO: ETH) The much anticipated “London” hard fork went live today. The software upgrade will reduce the cryptocurrency’s transaction fees known as gas prices and make them less volatile, but it could be a kick for Ethereum miners.
While the hard fork is good news for users and investors, especially due to the rising popularity of non-fungible tokens that primarily run on Ethereum’s blockchain, it will reduce the revenue that miners should generate and eventually could mine make it irrelevant.
Traders and investors are thrilled that the upgrade will help Ethereum grow significantly, as some believe the second largest cryptocurrency could overtake Bitcoins (CRYPTO: BTC) Market capitalization in the next few years.
See also: How to Buy Ethereum • Step by Step
The Ethereum Chart: Ethereum has skyrocketed 63% since July 20 when the crypto hit a bullish quadruple floor pattern at the $ 1,718 level and ricocheted off. When the crypto hit on July 21st, it printed a bullish marubozu candlestick, suggesting higher prices were coming, and Ethereum has since continued a huge hike north with little consolidation on the daily chart.
On Thursday afternoon, Ethereum attempted to print a bullish green hammer candle holder with a long lower wick. The lower wick shows when the price of the cryptocurrency fell, bulls bought the dip, and the overall candle shows that higher prices should come on Friday.
There are two warning signs on the Ethereum chart that technical traders should be vigilant for:
- Ethereum appears to be trading up in an ascending channel. While a rising channel is bullish in the short term, the pattern often forms within longer term downtrends as long as the crypto continues to trade in it.
- Ethereum’s Relative Strength Index (RSI) is around 73%, which is technically overbought. Eventually, if Ethereum continues to trend higher, it will require some consolidation on the daily chart to cool the RSI. When the Ethereum RSI registered above 70% between April 29th and May 12th, Ethereum entered a month-long downtrend.
Ethereum trades above the eight- and 21-day exponential moving averages (EMAs) with the eight-day EMA trading above the 21-day trend, both bullish indicators. The crypto is also trading above the simple 200-day moving average, suggesting that overall sentiment is bullish.
- Bulls should want to see some consolidation and within that consolidation Ethereum could settle in a bullish pattern to negate the ascending channel. Ethereum’s next overhead resistance levels are at $ 2,890 and $ 3,240.
- Bears want to see large bearish volume and drop Ethereum out of the channel. Below is support at $ 2,609, $ 2,377, and $ 2,151.
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