ETHXBT has formed lower highs and found support around 0.08700, creating a descending triangle formation on its 1-hour time frame. Price is testing the triangle resistance at the moment and might be due for a drop to support.
The moving averages are oscillating so the consolidation could carry on for some time. Also, these indicators appear to be holding as dynamic resistance around the top of the triangle as well.
Stochastic is on the move up to show that buying pressure is still present. If bulls are strong enough, they could push for an upside break of resistance and a rally up to the triangle highs around 0.10500 and beyond.
RSI is on middle ground and moving sideways so ETHXBT could follow suit. A pickup in selling pressure and a downside break of support could spur a drop of the same height as the triangle formation.
Digital currencies like ethereum and bitcoin are enjoying a lot of support at the moment, thanks to the pickup in global uncertainties. For one, there’s the upcoming testimony by former FBI head Comey on Trump’s potential connection with intelligence information leaks to Russian officials.
Another potential risk is the UK elections, which could determine how the government’s Brexit stance could be. The inability to secure majority for the Conservatives could weaken their bargaining front to EU officials and make it difficult for PM May to push any reforms thru lawmakers. On the other hand, securing a majority could strengthen their stance and lead to political stability.
There’s also the ongoing rift in the Middle East as Saudi Arabia and a number of Gulf states have cut diplomatic ties with Qatar, heightening potential tensions in the region. However, bitcoin recently took a hit when investor Mark Cuban tweeted that the cryptocurrency may be in a bubble.
This spurred a sharp dip for bitcoin across the board but it seems to be in recovery mode. With that, traders could book profits off their long ETHXBT trades and lead to a drop back to the triangle support.