ETHXBT Price Technical Analysis – Stuck in a Triangle

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ETHXBT Price Technical Analysis - Stuck in a Triangle

ETHXBT has been stuck in consolidation, forming lower highs and finding support at 0.01800. This has led to the creation of a descending triangle pattern on its 1-hour time frame and price is currently testing the resistance.

A bounce off this area could lead to another test of support in the near-term. The 100 SMA has just crossed below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In that case, a break of the triangle support might even be possible.

Note that the 100 SMA lines up with the triangle resistance, adding to its strength as a ceiling. Stochastic is heading south so ETHXBT price could follow suit. RSI, on the other hand, is on middle ground and barely offering strong directional clues at the moment.

Ethereum has been gaining more acceptance in cryptocurrency exchanges lately, which explains the sudden run up in prices earlier int he week. However, bitcoin is offered in more countries so it’s understandable why it exhibits stronger gains especially when risk aversion comes into play.

So far, the main event risks for the week namely the BOJ and FOMC decisions have already passed without triggering huge moves for ETHXBT, which suggests that the consolidation could go on. Price is still away from the peak of the triangle so a breakout might not happen anytime soon.

Keep in mind, though, that the US is set to print its advanced GDP reading today and this could have a strong impact on overall market sentiment. A surge in risk-off moves could support bitcoin against ethereum, likely taking ETHXBT back to the bottom of the triangle or even lower.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com