ETHXBT recently pulled up to the broken short-term trend line visible on its 1-hour chart. This trend line held as resistance and price seems ready to resume its drop.
Applying the Fib extension tool shows the following downside targets for ETHXBT:
- 38.2% level at 0.01397
- 50% level at 0.01365
- 61.8% level at 0.01334
- 76.4% level at 0.01295
- 100% level at 0.01232
The 100 SMA recently crossed below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In addition, the 100 SMA is holding as dynamic resistance. Another pullback to the broken uptrend line could find resistance at the inflection points around the 100 SMA (0.01500) and 200 SMA (0.01525).
RSI is on the move down from the overbought area, which means that sellers are in control of price action. However, stochastic is starting to turn higher from its drop, suggesting that bullish pressure could return.
Bitcoin has been gaining traction leading up to the US elections since it benefitted from the market uncertainty. However, traders seem to be warming up to the idea of a Trump presidency so they’re booking profits off their risk-off trades, which could mean lower bitcoin prices.
Also, bitcoin is being weighed down by the rumor that the Chinese government is looking into measures to curb trading in the mainland. While many have noted that this is far more difficult to implement than in theory due to the nature of the bitcoin network, investors can’t help but be cautious and book profits off their previous positions. Any updates on this theme could continue to have a strong impact on ETHXBT.
Ethereum, meanwhile, continues to deal with problems in its own network. Last month, several attacks on the ethereum blockchain forced developers to implement a hard fork, but this wasn’t enough to stop threats from materializing.
Zooming out to the longer-term time frames of ETHXBT shows that price already broke below the bearish flag consolidation pattern around the major support. This suggests that sellers are getting the upper hand and could push for a longer-term drop to the next major floor at 0.0800. On the other hand, if buyers return to the game and defend the floor, ETHXBT could be poised for a climb to 0.01700.
The 100 SMA is below the longer-term 200 SMA on the daily time frame so bears definitely have control for the time being. The gap between the moving averages is still pretty narrow so don’t discount an upward crossover and reversal yet, but a larger gap could confirm strengthening bearish pressure and likely declines for ETHXBT.
RSI seems to be on the move up from the oversold area on this time frame but the oscillator is slowly starting to turn lower again. Stochastic is making its way down from the middle of the range as well, indicating that sellers are eager to push price down even before the climb is overdone.
Besides, ETHXBT has been consistently forming lower highs, which means that bears are gradually gaining the upper hand even on the longer-term perspective. Of course any major changes in market sentiment could debunk these technicals but odds are pointing towards another drop for ETHXBT.