ETHXBT has formed lower highs and higher lows, creating a symmetrical triangle pattern on its 4-hour time frame. Price is currently testing the triangle support and could be prime for a bounce back to the resistance.
However, RSI and stochastic are moving down, suggesting that sellers are in control of ETHXBT price action. This could spur a break below the current support around 0.01900 and a selloff for ethereum. The chart pattern spans 0.01300 to 0.02300 so the resulting breakout could last by the same size.
The moving averages are oscillating, which suggests that range-bound conditions could stay in play. For now, these indicators are also holding as dynamic support levels near the bottom of the triangle, which could keep further losses in check.
Bitcoin has been enjoying strong bullish momentum these days, though, as the uncertainty in the financial markets has drawn investors to pursue returns in alternative assets like cryptocurrencies. Central bankers have been discussing their monetary policy biases while the UK government is rumored to start the Brexit negotiations by triggering Article 50 in April next year.
BOJ Governor Kuroda has hinted that they are open to easing further while RBNZ head Wheeler cautioned against rapid easing and its repercussions on the property market. Meanwhile traders are waiting for clearer Fed policy direction from Chairperson Yellen in her Jackson Hole testimony later this week.
More signs of a property sector slowdown have been seen from China so there’s a chance that investors in that region could also move their funds to bitcoin in anticipation of government stimulus or yuan depreciation. The hard fork in ethereum has led to a bit of selling pressure on this particular cryptocurrency so traders still prefer the more popular bitcoin.