- Ethereum price is moving sideways on the 1-hour time frame, creating a triangle formation on the short-term chart.
- The path of least resistance is to the downside, as the longer-term downtrend is still intact.
Ethereum price could find more downside momentum, pending a break below the support of the current consolidation pattern.
Testing triangle resistance
At the moment, Ethereum price is hovering around the top of the triangle consolidation around 0.00261BTC, which might be enough to keep further gains in check. A return in selling pressure could lead to a move back to the near-term support at 0.00245BTC or perhaps a breakdown.
The 100 SMA is currently below the longer-term 200 SMA on this particular time frame, also confirming that the path of least resistance is to the downside. In addition, stochastic is indicating overbought conditions, which means that sellers are gaining energy and might be strong enough to push for more declines. RSI is also on the move down after a brief stay in the overbought region.
The moving averages line up with the near-term resistance at the triangle consolidation pattern, serving as the line in the sand for any ethereum price gains. A downside break could push price down to 0.00240BTC at the previous lows or much lower until 0.00231BTC.
Intraday support level – 0.00250BTC
Intraday resistance level – 0.00265BTC
Charts courtesy of Trading View