ETHXBT has been stuck inside a large descending triangle on its daily chart and it looks like the pattern is still holding. Price bounced off the bottom of the formation after the hack in a bitcoin exchange in Hong Kong.
Apart from the uncertainties in the bitcoin industry spurred by the closed door meeting between developers and miners, the loss of more than $70 million worth of bitcoin in Hong Kong exchange Bitfinex has led traders to dump bitcoin in favor of other cryptocurrencies again. This marked the second-largest security breach next to the loss of $500 million in Mt.Gox a few years back.
With that, ETHXBT seems poised to make another test of its long-term triangle resistance at 0.02000. The 100 SMA is above the 200 SMA for now so the path of least resistance is to the upside, giving ethereum enough support to climb up to the top of the formation.
Stochastic has been on the move down but seems to be turning up from its dive, possibly reflecting a return in buying pressure. RSI is on middle ground, barely offering any strong directional clues at the moment.
If you’re bearish on this pair, better wait for an actual test of the triangle resistance, which also happens to be around the 100 SMA dynamic inflection point. Note that the gap between the moving averages is narrowing so a downward crossover could still be possible sooner or later, taking ETHXBT back to the triangle support at 0.01600 or perhaps even lower.
A breakout in either direction could set the tone for a longer-term uptrend or downtrend in ETHXBT. Note that the pattern spans 0.01600 to 0.03600 so any breakouts could last by the same size.