ETHXBT is still trading inside its long-term descending triangle formation and is back to testing the resistance. If this keeps gains in check, ethereum could head back towards support at 0.01600.
The 100 SMA is above the 200 SMA so the path of least resistance is to the upside, suggesting the possibility of an upside breakout. However, these moving averages have been oscillating, also suggesting that the consolidation could continue.
RSI is pointing down, which suggests that sellers could take control of price action. Stochastic is also moving lower so selling pressure is building up, adding to confirmation that ETHXBT is eyeing the triangle support.
Bitcoin price has been advancing against the dollar and its other counterparts these days, but it looks like ethereum is putting up an even stronger fight. After all, bitcoin suffered a sharp selloff when a bitcoin exchange was hacked in Hong Kong a few weeks back, which explains the downside pressure on price.
For some, the Bitfinex hack exposes the downsides of blockchain security, leading traders to move to other cryptocurrencies such as ethereum instead. However, profit-taking from the bitcoin selloff has also been in play for the past few days, which could be negative for ETHXBT.
In any case, playing the current chart formation could be the safer bet for now as market watchers wait for stronger market catalysts. A break below the triangle support could set the stage for a longer-term downtrend while an upside break past resistance around 0.02000 could spark stronger gains.