ETHXBT is still trending lower on its daily time frame even as price made a pullback to the descending trend line and traded sideways for weeks. The trend line seems to be holding as resistance and price is now ready to resume its drop back to the lows at 0.00800.
The 100 SMA lines up with the trend line on this time frame, adding to its strength as a ceiling. Also, the short-term SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. The gap between the moving averages is getting wider, which means that selling pressure is getting stronger.
RSI is heading south so ETHXBT could follow suit. Stochastic is also moving lower to show that sellers are in control of price action at this point. However, if ETHXBT breaks past the trend line resistance, the 200 SMA could serve as the line in the sand for the downtrend. A break past that level could bring price up to the next area of interest at 0.02000.
Bitcoin has broken higher against its peers recently after rising risks of geopolitical tension have driven up demand for the cryptocurrency. US President Trump has called out China and Japan for manipulating their currency to take jobs and companies away from the US, adding to already-tense relations between the nations. A potential currency or trade war could have massive repercussions on global growth and thereby drive up demand for alternative assets like bitcoin.
Also, concerns that Chinese authorities might implement stricter restrictions on bitcoin activity in the mainland seem to be fading. If that is the case, investors could reopen their long holdings and sustain the climb in bitcoin across the board. On the other hand, increased threats of regulation could force it to return its recent wins.
As for ethereum, a number of companies are still retaining interest in the digital currency but it continues to pale in comparison to the more popular bitcoin. Still, it’s worth noting that ethereum has also been able to break higher against the dollar recently and is also showing signs of sustaining its climb.
In Switzerland, a blockchain consortium similar to R3 is working on ethereum as a trading tool. “Our privacy solution paves the way for the usage of the ethereum blockchain in financial markets,” said project manager Mathias Bucher in a statement.