Ethereum has formed higher lows and higher highs since breaking above the longer-term falling wedge consolidation. Price is gearing up for another test of the ascending channel support on its 1-hour time frame.
The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. This means that the uptrend is more likely to resume than to reverse. The moving averages are also close to the channel support around $475 to add to its strength as a floor.
However, the gap between the moving averages is narrowing to signal weakening bullish momentum. If a crossover materializes, selling pressure could return and lead to a reversal from the climb.
RSI is also on the move down to confirm that bears have the upper hand, but the oscillator is approaching oversold levels to hint at exhaustion among sellers. Stochastic is already dipping into oversold territory to signal that bullish momentum could return soon.
A pickup in buying pressure could lead to a move back up to the channel top at $550 or at least until the mid-channel area of interest at $500-510. A break below channel support, on the other hand, could mean a move to the next horizontal support around $450.