ETHXBT had been trading inside a symmetrical triangle pattern visible on its 4-hour chart. Price seems to have broken past the resistance around 0.02100, which means that it’s ready for more gains.
The triangle chart pattern is approximately 0.00900 points tall so the resulting breakout could last by the same amount, taking ETHXBT up to 0.03000 or at least until the top of the formation at 0.02400.
The moving averages are still oscillating to indicate range-bound conditions, although these indicators have yet to price in this early breakout move. An upward crossover by the 100 SMA from the longer-term 200 SMA could confirm that the uptrend is likely to carry on, drawing more bulls to the mix.
RSI is heading north so ETHXBT could follow suit. Stochastic is also pointing up for now but is already in the overbought area, suggesting that buying pressure could fade soon. If so, ETHXBT could retreat to the broken triangle resistance for a retest before resuming its climb.
Bitcoin itself is stuck in tight consolidation against most of its other peers as traders seem to be holding out for the top-tier market events this week. The biggest catalyst among these could be the FOMC statement, as it would determine how risk appetite could fare in the next few months. A decision to hike interest rates or stay hawkish could lead traders to flock to the dollar for higher returns and in anticipation of the impact of higher borrowing costs on businesses and consumers.
Meanwhile, ethereum is gaining support due to its developer event as the industry leaders are discussing the benefits of the cryptocurrency and network. Devcon2 is expected to shore up interest in ethereum for the next few days, as the talks focus on security and scalability.
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