Ethereum was previously consolidating in a symmetrical triangle pattern and is breaking higher to show that an uptrend is in the works. Price has closed past the top of the triangle to confirm that bullish momentum has picked up.
On top of that, the 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This means that the rally is more likely to continue from here. In addition, the 100 SMA has held as dynamic support on the latest pullback and would probably keep doing so.
Stochastic is indicating overbought conditions, though, so there’s still a chance that buyers could book profits and let sellers take over. In that case, another dip to the bottom of the triangle could happen and the 200 SMA might also be tested as a dynamic inflection point.
The dollar has drawn some support after the FOMC announcement. Although the Fed removed some statements on watching inflation closely and seeing a stronger outlook for the US economy, traders generally see the policy bias as unchanged.
Besides, safe-haven demand has picked up recently as geopolitical risks are resurfacing. However, cryptocurrencies appear more resilient. Analysts even project that ethereum could outpace bitcoin and its peers in terms of percentage gains this year.
In particular, Reddit co-founder predicted that ethereum could reach $15,000 this year as companies keep building applications on it. Increased adoption could encourage further dapps and therefore liquidity and volumes in this particular market.