ETHXBT Price Technical Analysis – Channel Break Correction

ETHXBT was previously trading inside an ascending channel visible on its 1-hour time frame before it broke lower to signal a reversal. Price hit a low of 0.02045 before showing signs of a correction to the broken support zone.
Applying the Fib tool on the latest swing high and low shows that the 61.8% Fibonacci retracement level lines up with the broken channel support at 0.02145. This is also close to the moving averages, which could hold as dynamic resistance levels. The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside.
RSI and stochastic are on the move up, though, hinting that the correction is still in play even as ETHXBT price tests the 50% Fibonacci retracement level. Once the oscillators reach the overbought zones and turn lower, selling pressure could resume and push ETHXBT back to the previous lows.
On the other hand, a rally past the Fib levels and the channel support could spur a climb up to the resistance around 0.02200 or higher. Still, bitcoin price remains supported against other cryptocurrencies as risk appetite appears weak on expectations of a Fed rate hike in December.
The upcoming NFP release, which is expected to post an upside surprise, could weigh on bitcoin price against the dollar but might still keep it afloat against ethereum and other digital currencies. With that ETHXBT might resume its drop before the end of the week or onto the weekend when volatility usually picks up.
Apart from that, news updates indicating that ethereum’s blockchain is still under attack has been weighing on ETHXBT while developers call for a hard fork to solve these dilemmas.
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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.