ETHXBT has been on a slow climb lately but could be due for a test of support. Price is moving in a shallow ascending channel visible on its 4-hour chart and is approaching the bottom at 0.04000.
A bounce off this level could send it back to the resistance at 0.06500 or at least halfway there at 0.05000-0.05500. The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside, which means that a support bounce is more likely to happen than a break.
Stochastic has pulled up from the oversold area to signal a return in buying pressure. This could be enough to sustain the ongoing climb in ethereum. Also, RSI has turned up from the oversold zone but appears to be heading back south again so ETHXBT might follow suit.
Bitcoin is currently surging to one record high after another as anticipation is building up for the COIN ETF decision. Recall that the SEC previously rejected this application on the grounds that bitcoin is traded in unregulated markets, which means that it could have a large incidence of fraud or manipulation. However, the Japanese government just recently implemented a rule that officially recognizes bitcoin as a legal form of payment so the SEC announced a review of the COIN ETF application and opened it for further comment and additional requirements until May 15.
Approval could allow ETHXBT to break below the channel support as market interest surges for bitcoin, with the ETF opening it up for access to funds and individual investors, as well as opening the door for other cryptocurrency-based securities to be listed. On the other hand, rejection could mean a bounce off support for ETHXBT.
Still, it’s also worth noting that ether also continues to climb to record highs, even as bitcoin has been hogging the spotlight. Ethereum is currently being explored by a number of banks and financial institutions for its practical applications so price could stay supported as well.
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