ETHXBT barely made any strong bullish momentum from its upside breakout from a long-term consolidation pattern. Instead, price is now showing more potential downside with its double top formation visible on the 1-hour chart.
ETHXBT failed in its last two attempts to break past 0.02100 and is testing the neckline support at 0.01900. A break below this support zone could send price lower by 0.00200, which is the same height as the reversal pattern.
The 100 SMA crossed below the 200 SMA to indicate that the path of least resistance is to the downside and that further losses are likely. This could take ETHXBT down to 0.01700 next or onto the next support at 0.01400.
However, stochastic is pointing up to show that buyers are trying to take control of price action, possibly leading to another bounce up to the tops. If these still hold as resistance, a triple top formation could be seen and this would still serve as a reversal signal.
Also, RSI is on the move up so ethereum could follow suit for now, at least until the oscillators reach the overbought zones. If bullish pressure continues to stay in play, ETHXBT might make another attempt to break past the highs and go for more gains.
Bitcoin seems to be the cryptocurrency of choice these days as it has been able to strongly benefit from the unwinding of dollar positions. Traders are feeling less confident that the US central bank can afford to hike interest rates in September or December, owing to the downbeat NFP and ISM figures, so demand for the dollar has weakened significantly.
Against the dollar, ethereum is in consolidation as well but could be in for an upside breakout, depending on how market sentiment fares in the coming days.
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