ETHXBT has formed lower highs and found support around 0.01550, creating a descending triangle formation. Price is bouncing off the triangle support and looks ready to test the top at 0.01750.
The 100 SMA is below the longer-term 200 SMA, confirming that the path of least resistance is to the downside. In that case, a downside break of the triangle support could even be possible later on. The 100 SMA also lines up with the triangle resistance, adding to its strength as a ceiling.
RSI is on the move up, signaling that buyers might be in control of ETHXBT price action for now. A larger rally could lead to a test of the 200 SMA inflection point, although a move past this area could confirm an upside breakout from the triangle pattern. Similarly stochastic is also heading up so ethereum price could follow suit.
The lack of major market catalysts has kept ETHXBT in consolidation for the past few weeks as traders are waiting for the next big move. Potential catalysts for today include the Bank of England monetary policy decision, as additional easing or a rate cut could refuel demand for non-fiat currencies.
On Friday, China will release a bunch of top-tier reports that would provide a better picture of how the world’s second largest economy is faring. The GDP reading for the second quarter could show slower growth of 6.8% versus the earlier period’s 6.9% expansion while retail sales, industrial production, and fixed asset investment are also expected to be weaker.
Earlier in the week, China already printed a smaller trade surplus, indicating weaker demand and reviving fears of a global slowdown. In this case, traders could be encouraged to pursue alternative assets like bitcoin and ethereum in seeking better returns compared to traditional markets.