- 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