ETHXBT Price Technical Analysis – Wedge Breakdown!

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ETHXBT was previously trading inside a rising wedge consolidation pattern visible on its 4-hour time frame before making a break lower. This indicates that sellers are taking control of price action and that further losses are likely.

The wedge pattern spans 0.01400 to 0.02400 so the resulting downtrend could last by the same height or at least down to the 0.01400 support. The 100 SMA is still above the longer-term 200 SMA for now but a downward crossover seems imminent, possibly indicating a buildup in selling pressure.

RSI is on the move up, though, so ETHXBT could follow suit. This could pave the way for a quick pullback to the broken wedge support at 0.02000 before price resumes its selloff. Meanwhile, stochastic is sitting in the oversold region, which suggests that sellers are taking a break for now.

Bitcoin has staged a strong rally against the dollar this week as traders likely booked profits ahead of the release of the FOMC minutes. Still, the cryptocurrency could return some of its gains if the transcript reflects stronger hawkish remarks from majority of Fed officials, keeping rate hike expectations in play for November or December.

As for ethereum itself, it has been continuously weakening against its other cryptocurrency rivals as reports that its blockchain is under attack has been weighing on prices. Ethereum has also been trading lower against the US dollar for the past few weeks, with technical indicators suggesting a continuation of the move.

A couple of weeks back, spam attacks led to large-scale ethereum node outages, which were highlighted in the Devcon2 developer conference. While some say that this could increase the resiliency of the ethereum network, price action suggests that more folks doubt that this will be the case.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com
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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.