ETHXBT recently found resistance at the area of interest and falling trend line marked in a previous article but bears are having difficulty pushing price down. Price has recently pulled up close to the trend line, forming higher lows and indicating that bulls are trying harder.
The 100 SMA just crossed below the 200 SMA to indicate that the downtrend is likely to resume but there’s still a chance that the moving averages are just oscillating. RSI is heading south to show that selling pressure is back while stochastic is also indicating a buildup in bearish pressure.
In that case, ETHXBT could resume its drop to the previous lows at 0.01500 or much lower. But if buyers keep on pushing higher, price might break past the trend line and area of interest around 0.02300. Further gains could take it up to the next ceiling at 0.02800.
Bitcoin price has been consolidating these days, following weeks of strong volatility earlier in the month. The rallies and reversals are taking a break for now since the event risks have passed.
Uncertainty for the EU referendum was seen as the major factor driving ethereum and bitcoin prices in the past few weeks and now that the UK has decided to exit, the attention now shifts to the leaders’ negotiations. Should these proceed smoothly, risk appetite could return to financial markets and lead traders back to traditional assets like equities and currencies.
On the other hand, further uncertainty in the EU meetings could keep uncertainty on the table and fuel demand for virtual currencies like bitcoin and ethereum. Since bitcoin is offered in more markets, it enjoys stronger volumes and tends to make larger moves compared to ethereum. However, the congested bitcoin market is still keeping ethereum demand supported.