ETHXBT is gaining traction on its uptrend upon breaking past a descending triangle resistance recently. Price is now moving inside an ascending channel formation and is drawing support at the bottom. In addition, a small double bottom pattern is being formed, adding confirmation that buyers are ready to take control.
Stochastic is on the move up, confirming that bullish momentum is in play. RSI is also heading north so ETHXBT could follow suit, possibly taking price up to the channel resistance at 0.01900 or at least until the middle at 0.01800.
The 100 SMA is also above the 200 SMA so the path of least resistance is to the upside and the rallies are likely to carry on. However, the longer-term 200 SMA is holding as dynamic resistance at the moment. A break above this level could confirm that buying pressure is strengthening.
Traders seem to be booking profits off their long bitcoin positions these days as a sense of calm has returned to the financial markets. European leaders are approaching the Brexit with careful planning, easing fears of a sharp slowdown in the region, while top-tier data from China has also calmed concerns about weaker performance.
In addition, expectations of additional easing from the European Central Bank, Bank of Japan, Bank of England, Reserve Bank of Australia, and Reserve Bank of New Zealand are supporting gains in higher-yielding assets, encouraging traders to move their funds away from cryptocurrencies.
This phenomenon is more observable in bitcoin, though, so the impact on ethereum has been limited. If anything, the latter has acted more of a counter balance to bitcoin price action in the past few days. A sharp selloff in bitcoin could lead ETHXBT to test the 0.02000 major psychological barrier next.
