ETHXBT Price Technical Analysis: Pullback to Channel Support

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ETHXBT is trending higher, moving inside an ascending channel formation on its 4-hour chart. Applying the Fib tool on the latest swing low and high shows that the 38.2% level lines up with the channel support and appears to be keeping losses in check.

A larger correction could last until the 61.8% Fib closer to the .0800 major psychological support. The 100 SMA is above the longer-term 200 SMA on this chart so the path of least resistance is to the upside. In other words, a bounce back to the channel resistance at the 0.1100 level is more likely to happen than a break of support.

Stochastic is already pulling up from the oversold area to reflect a pickup in buying pressure. However, RSI is still on the move down so there’s enough energy for sellers to push for a larger correction. The moving averages could hold as dynamic support levels in this case, but the 200 SMA might be the last line of defense in the uptrend.

Ethereum has been gaining traction as it established a steeper channel versus bitcoin in the past month. Even with the new scaling agreement for bitcoin, it looks like institutions and banks trust ether more in terms of network security.

For now, though, volume has picked up for bitcoin after an exchange in China has reopened withdrawals for clients. Recall that a number of firms had to adjust operations to comply with government money laundering checks, leading to speculation that monetary authorities might eventually halt bitcoin activity in the country.

In any case, digital currencies are enjoying a new wave of support these days, especially since geopolitical risks stay in play. For one, there’s the upcoming snap elections in the UK while the looming debt obligation for Greece revived fears of capital controls that led to a surge in cryptocurrency use in the past.

Moving forward, it could be a credibility battle among cryptocurrencies from here as the more stable ones like ethereum and Ripple could emerge stronger.

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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.