ETHXBT has formed lower highs and found support just below 0.07000, creating a descending triangle formation. Price is currently hovering around support and may be due for a move back up to the resistance around 0.08000.
The 100 SMA is pretty close to the 200 SMA, so it’s tough to tell which direction this pair might take. If the short-term moving average moves much lower, selling pressure could kick in and trigger a break below support. The chart pattern spans 0.10000 to 0.07000 so the resulting breakout could last by 0.03000.
Stochastic is pointing down to indicate that bearish momentum is in play. RSI has been on the move up but is heading south again so ETHXBT might follow suit.Most cryptocurrency pairs are in holding patterns these days as investors are waiting to hear what the Chinese government has to say about the rumored shutdown of exchanges in the country. This follows a joint statement from several agencies to ban ICO funding, which also affects bitcoin trading activity in the country.
Bitcoin could be poised for more losses if the government does confirm that a ban is being implemented, more so than ethereum whose volume is greater in other parts of the world. However, the likelihood of geopolitical risk kicking back in as North Korea responds to the newest set of UN sanctions could keep bitcoin bid against ethereum as the latter benefits most as digital gold during these cases.
Earlier in the week, ethereum had the ERC-20 standard implemented and this establishes a common set of rules for tokens issued via ethereum smart contracts. This paves the way for the next upgrade for ethereum called Metropolis and developers have confirmed that a testnet will be launched in the coming days. In particular, they have set September 18 as a date for Byzantium Testnet launch.