Major cryptocurrencies across the board continued gaining for the second consecutive day on Tuesday after finance ministers had productive closed-door discussions about digital assets at a G-20 meeting in Argentina.
Looking at their price action, cryptocurrencies such as Ethereum formed a morning star candlestick pattern following Sunday’s spinning top.
ETH/USD, in particular, has bounced back up from a key support and 78% Fibonacci retracement level of $518. Even though the price tested this level again during Tuesday’s trading session, it was able to end the day higher on a bullish note. This level is also important because it acted as a resistance level back in December 2017, before Ethereum launched to reach for the all-time high levels during the cryptocurrency craze period. Some indicators also suggest the digital coins may be oversold and due for a rebound.
Despite this, we still can’t be sure that the downtrend for cryptocurrencies such as Ethereum has ended for good. Again, looking at the daily chart ETH/USD remains below a bearish Ichimoku cloud, with all other moving averages on Ichimoku Kinko Hyo’s standard setup sending mixed signals.
Ethereum remains the second largest cryptocurrency after Bitcoin, with a market cap of over $55 billion.
*This article was originally published here.