ETHXBT found resistance at the 0.02900 area lately, which turns out to be the resistance of an ascending channel forming on the 1-hour time frame. Price might be on its way to test the channel support from there, but it appears to be stalling at the mid-channel area of interest.
This area lines up with the moving averages, which typically hold as dynamic support zones. The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside. This means that price could bounce off the 0.02500 levels and head back up to the channel resistance.
Stochastic and RSI are both on the move down, signaling that sellers are in control of price action, but both oscillators are nearing oversold regions. This could mean that bearish pressure could fade soon and allow bulls to take over. A larger correction could last until the channel support at 0.02400.
Cryptocurrencies are enjoying strong demand these days, thanks to the outflow of funds from Europe and China. As for the former, Brexit fears are leading investors to liquidate their holdings of EUR and GBP currencies as well as holdings of any European assets in anticipation of a possible Brexit, which would bring more economic and financial uncertainty to the region.
As for China, investors are also moving their money to alternative investments as downbeat data from the economy recently has prompted speculations of a weaker yuan and potential capital controls. Stock markets in China are also expected to weaken, discouraging investors from parking more funds there.
In terms of the battle between ethereum and bitcoin, the former could enjoy renewed demand as market watchers have been noting that the bitcoin network is already crowded. The uptrend on ETHXBT could resume sooner or later for as long as this sentiment persists.
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