ETHXBT Price Technical Analysis: Potential Countertrend Setup

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ETHXBT recently enjoyed a strong rally but is currently testing a near-term ceiling at the top of its ascending channel pattern. If sellers take over at this point, ETHXBT could resume its drop back to the channel support at 0.01100.

The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. Also, a bit of a bullish flag can be seen, indicating trend continuation. The moving averages are somewhere around the middle of the channel, acting as pullback areas if a correction takes place.

Stochastic is indicating overbought conditions so buyers might need to book profits at this point and allow sellers to take over. RSI is also in the overbought area and is already turning lower to suggest a return in bearish pressure. However, a break past the channel resistance at 0.01350 could be indicative of a sharper climb underway.

Bitcoin is consolidating to most of its peers at the moment as it is testing record highs and awaiting the bitcoin ETF decision by the SEC. An approval would make bitcoin more accessible to investors and institutions, thereby driving up market liquidity and demand significantly. On the other hand, a rejection could trigger losses for the cryptocurrency in the near term. Analysts are putting the odds of approval at 10-25% so there’s still a considerable risk of rejection.

There have been no major announcements from China when it comes to regulations or penalties on bitcoin trading. Economic data has been mostly stronger than expected so officials might not be too worried about yuan speculative positioning or offshore investments for the time being, which means that they might ease up on their crackdown of bitcoin exchanges.

Meanwhile, ethereum industry developments indicated that this digital currency might be ready to ditch mining activity. Without this burdensome activity, ethereum could be ” more usable, more secure and more scalable too,” said Vlad Zamfir, who has been working on Casper, which is a “proof-of-stake” model. This model requires that users put up collateral if they want to collect fees for validating transactions instead of relying on brute-force computing.

Note that ethereum is the second biggest cryptocurrency next to bitcoin and that its market has surged by 90% so far this year. Bitcoin, meanwhile, has picked up by 24% as traders continue to put money in the alternative investment as a hedge against geopolitical uncertainty.

 

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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.