ETHXBT has been consolidating inside a symmetrical triangle pattern visible on its 4-hour chart and it looks like bears are increasing the pressure. Price seems to have broken below the triangle support, indicating that it could head further south.
Moving averages are still oscillating for now so there’s no strong directional clue just yet. A downward crossover could confirm that the path of least resistance is to the downside and that ETHXBT could be on track towards testing the next support around 0.01500.
However, RSI seems to be on its way up so ETHXBT price could still follow suit. Similarly, stochastic is pointing up to show that bulls could still take control of price action. In that case, the move lower could prove to be a fakeout and ethereum could regain strength against bitcoin at some point.
Reports of a hack in the ethereum network earlier this year is keeping a lid on this cryptocurrency’s gains, rendering bitcoin as the more stable alternative. So far, bitcoin is also drawing support from investors who are seeking higher returns compared to traditional financial assets such as commodities and equities.
The slump in higher-yielding securities is seen to be a result of Fed Chairperson Yellen’s hawkish monetary policy views, which she shared during the latest Jackson Hole Symposium. This led market watchers to forecast that the Fed would still hike interest rates in at least one instance before the end of the year, potentially weighing on business investment and consumer spending activity down the line.
So far there have been no adverse news to weigh on bitcoin price gains, which could ensure steady gains moving forward. Still, any major changes in overall market sentiment might yield quick reversals.