ETHXBT has been trending lower, possibly losing some momentum from its earlier rally. Price is trading inside a descending channel formation and is currently testing resistance. If this keeps gains in check, price could drop back to the support at 0.04400.
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. However, the gap between the moving averages is narrowing to indicate a slowdown in bearish momentum. If this carries on to a downward crossover, it could draw more sellers to the mix
Stochastic is on the way down to show that sellers are in control of ETHXBT price action. This could be enough to take price lower as well. If selling pressure is strong enough, a break of the channel support could happen and put price on a steeper drop. RSI is also turning lower to indicate that sellers are on top of their game and are likely to let the selloff resume.
Looking at the longer-term charts reveals that ETHXBT is still maintaining its climb and that this selloff may merely be a correction. An area of interest is located at 0.04500, which is also close to the channel support and might keep losses in check. If so, price could bounce back to the recent highs at 0.05600 and beyond.
Bitcoin is still under a bit of selling pressure due to the network hard fork. The debate is still ongoing and many are worried that this particular cryptocurrency could not emerge as stable as ethereum did when it encountered a scaling problem. Exchanges and firms have already warned clients of the risks involved and how incompatibilities may arise if the new software overtakes the old one.
Still, the pickup in risk aversion in the markets has rendered bitcoin the more preferred alternative. For one, the disappointment with the US healthcare bill has led traders to dump dollar in favor of bitcoin while the ongoing risks related to Brexit are also enough to keep bitcoin bid.