ETHXBT Price Technical Analysis: Another Upside Triangle Break

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ETHXBT is strengthening once more as price made a breakout above a descending triangle for the second time this month. This signals that bullish pressure is very strong and that a test of the highs around 0.05700 is possible.

However, the 100 SMA is below the longer-term 200 SMA on this 4-hour time frame, which means that the path of least resistance is to the downside. The gap between the moving averages is narrowing to hint at an upward crossover, possibly drawing more bulls to the mix and allowing ETHXBT to extend its climb.

Stochastic is already in the overbought zone to reflect rally exhaustion. It is also gearing up to turn lower so ETHXBT might follow suit as sellers regain control. RSI is still pointing up to indicate that there’s some bullish momentum left but is also in the overbought territory so buyers might need to take a break from here.

If so, a pullback to the broken triangle resistance around 0.0400 and the moving averages could be in the cards. If this area holds as support, ETHXBT could be on track to resume its rally past the recent highs near 0.05000.

Bitcoin has enjoyed a pickup in support after the SEC showed signs of giving the Winklevoss bitcoin ETF another chance. Recall that anticipation for the SEC decision earlier this year was enough to shore up bitcoin gains, although the cryptocurrency gave back a lot of ground when the application was denied.

Still, the fact that the SEC hasn’t completely dismissed the idea leaves the possibility for seeing a bitcoin ETF in regulated markets, likely drumming up a lot of interest from individuals and institutions. With this, market liquidity would likely increase.

As for ethereum, the SEC is also looking into an ethereum ETF proposal, one that might actually overtake bitcoin. EtherIndex Ether Trust first filed in July 2016 to launch an ETF backed by a cache of ethers on the NYSE Arca exchange. The regulator is currently seeking comments before making their decision.

“Institution of such proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change,” the SEC said in a notice.

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With an upbringing rooted in deep ethical values, Yashu Gola knows how to put honesty and dedication into his articles. This young and dynamic financial analyst has done his graduation in IT engineering. His interests in financial writing have once brought him to our digital doorsteps. Since then, he has been an integral part of ForexMinute.com and writes the most captivating news-articles on the foreign exchange industry, cryptocurrencies, and medical marijuana trading.