Ethereum May Be Squeezing Toward a Breakout

Jack Dorsey and Square sparked interest with their $50 million $TRADESTATION:BTCUSD purchase this week. However a bigger story may be brewing in Ethereum: Coindesk just reported that CME is tossing around the idea of Ethereum futures and options.

The news comes at an interesting time for the ETHUSD chart, which is trapped in a triangle.

Bollinger Band Width % has narrowed to just 12 percent, its tightest volatility range since the last rally started on July 21.

ETHUSD also had an inside candle last week. This week it probed slightly below that $334.46 low below rebounding, potentially resulting in a false breakdown.

Two other indicators stand out technically. First, ETHUSD has steadily held support at its 100-day simple moving average (SMA). Interestingly, BTCUSD has respected that same line.

Second, MACD has started to turn positive on both ETHUSD and BTCUSD.

Overall, the confirmation isn’t super clear. But a lot of potential positives are starting to favor the big cryptos. Traders may want for watch for signs of accumulation. There may not be much of a pullback if BTCUSD or ETHUSD start running.

TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.