ETHXBT Price Technical Analysis: Double Top Neckline at Channel Support

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ETXHBT is still inside its ascending channel formation visible on the 4-hour chart. However, a double top appears to be forming so a downtrend could be due.

Price has yet to break below the double top neckline around 0.04000, which lines up with the channel support. If so, price could fall by around 0.02500 points or the same height as the reversal pattern. On the other hand, a bounce could lead to a test of the channel resistance at 0.06500 or higher.

The 100 SMA is above the longer-term 200 SMA on this time frame so the path of least resistance is to the upside. Price is currently testing the dynamic support at the 200 SMA and a bounce could take it back to the 100 SMA dynamic inflection point in the near term. Note, however, that the gap between the moving averages is narrowing to indicate a potential downward crossover.

RSI has been on its way down but appears to be turning back up so ETHXBT could follow suit. Stochastic has already dipped into the oversold area to indicate that sellers need to take a break and let buyers take over soon.

A lot hinges on market factors, though, as traders still appear to be keeping their hopes up for the COIN ETF approval even with the dent in bitcoin reputation owing to the WannaCry ransomware attack recently. Also, bitcoin is gaining support once more from the pickup in geopolitical risk.

In particular, this risk is coming from Washington after the US Justice Department ordered an official probe into the alleged intelligence information leak by Trump to Russia. This led to doubts that the administration can get anywhere with its fiscal policy changes and tax reform, although House Speaker Paul Ryan assured that Congress will keep working on this. Also, odds for impeachment have picked up recently, which could mean more uncertainty in the financial markets moving forward.

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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.