ETHXBT has recently broken above a double bottom formation on its 4-hour chart, signaling that an uptrend is in the works. Price has reached the 0.01335 area before pulling back to the broken area of interest, which is now keeping losses in check.
Applying the Fib tool on the rally shows that the 38.2-50% level coincides with this broken resistance, adding to its strength as a floor. The 100 SMA is crossing above the longer-term 200 SMA to show that the path of least resistance is to the upside. In addition, these moving averages are in line with the area of interest as well.
A larger pullback to the lowest Fib at .00960 could be possible, but RSI is already making its way out of the oversold area to indicate a return in buying pressure. Stochastic is still on the move down, though, so there’s still some bearish momentum left enough to spur a larger correction from the climb. Once buyers are back, price could head back up to the swing high and beyond.
Bitcoin has been gaining ground once more as concerns about Chinese regulation are fading and traders are also anticipating the approval of the first bitcoin ETF on Wall Street. The absence of major roadblocks in China’s bitcoin scene and the availability of a bitcoin ETF in the US could have a significant boost to liquidity, which could also shore up demand for the cryptocurrency. If these themes continue to stay in play, bitcoin could overtake ethereum in the near-term once more, especially since the former also enjoys strong demand in times of uncertainty.
These uncertainties pertain to the geopolitical risks in Europe, particularly the political situation in Italy and France, as well as the debt jitters in Greece and Italy. Back when Greece had trouble securing its bailout funds, the government imposed capital controls that led individuals to seek other forms of investing and financing.
As for ethereum, investors are still on the lookout for the next wave of projects. Some believe that a batch of decentralized apps are in the works and are ready to launch soon, possibly starting a new leg higher for the digital currency against bitcoin. Many experts have noted that the lack of project announcements shouldn’t be mistaken for lack of ambition among developers since many of these intend to replace existing apps, even beyond the payment platforms or database applications.