Ethereum ETH/USD was trading over 4% higher on Wednesday heading into Fed Chair Jerome Powell's Brookings Institution speech.
After Powell suggested the central bank could begin easing back on its interest rate hikes starting as early as next month, the S&P 500 jumped about 2% and Ethereum began to climb higher in unison, to trade up over 6% from Tuesday’s 24-hour closing price.
Ethereum’s jump higher confirmed the crypto is now trading in an uptrend pattern. The reversal into the uptrend was signaled on Nov. 21 and Nov. 22, when Ethereum printed a double bottom pattern at $1,081, which Benzinga called out on Nov. 23.
The double bottom pattern was also printed above a long-term descending trendline from which Ethereum broke higher on Oct. 25 and subsequently fell back toward to test as support. The bounce up from the level indicated a larger reversal could be in the cards.
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The Ethereum Chart: The most recent higher low in Ethereum’s uptrend was formed on Nov. 28 at $1,050.09 and the most recent confirmed high was printed at the $1,234.97 mark on Nov. 26. During Wednesday’s 24-hour session, Ethereum surged above that high but hasn’t indicated the next temporary top is in.
- If Ethereum closes the trading day near its high-of-day price, the crypto will print a bullish Marubozu candlestick, which could indicate higher prices will come again during Thursday’s trading session. The second most likely scenario is that Ethereum will form an inside bar on Thursday to consolidate Wednesday’s surge.
- If sellers come in later on Wednesday and cause Ethereum to close with a significant upper wick, the crypto will print a shooting star candlestick. A shooting star candlestick can indicate a temporary top, suggesting lower prices will follow.
- If Ethereum reaches the 50-day simple moving average, which is trending at about $1,341, the crypto may find resistance and print a bearish reversal candlestick, such as a doji candlestick, on smaller time frames. When Ethereum eventually retraces to the downside, the crypto may find support and bounce from the eight-day or 21-day exponential moving averages.
- Ethereum has resistance above at $1,412 and $1,717 and support below at $1,245 and $1,081.
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