Ethereum price rallied this past week and broke the 0.0350BTC resistance against bitcoin plus climbed above $150.00 versus the US dollar. ETH/BTC is currently correcting lower and it could test the 0.0320BTC support.
Important Points:
- Ethereum price started a downside correction after trading above the 0.0350BTC resistance.
- ETH/BTC is following a crucial bullish trend line with support at 0.0320BTC on the 4-hours chart.
- ETH price is currently approaching solid support near 0.0320BTC where buyers may emerge.
Ethereum Price Analysis (ETH/BTC)
This past week, there was a solid upward move above 0.0350BTC in Ethereum price versus bitcoin and above $155.00 against the US dollar. Buyers pushed ETH to BTC towards the 0.0375BTC where sellers protected further upsides.
The 4-hours chart of ETH/BTC indicates that the price topped near the 0.0376BTC and later started a major downside correction. The price declined below the 0.0350BTC support, but it is currently well above the 50 simple moving average (4-hours).
During the recent decline, the price traded below the 23.6% Fib retracement level of the last wave from the 0.0275BTC low to 0.0376BTC high. However, the previous support near the 0.0325BTC and 0.0320BTC levels are likely to act as solid buy zones.
More importantly, there is a crucial bullish trend line in place with support at 0.0320BTC. Besides, the 50% Fib retracement level of the last wave from the 0.0275BTC low to 0.0376BTC high is placed near the 0.0326BTC level to act as a barrier for sellers.
Should there be a break below the trend line and the 0.0320BTC support, the price may decline further. The next major support is at 0.0295BTC, which is the 76.4% Fib retracement level of the last wave.
On the upside, initial resistance is near 0.0340BTC and 0.0350BTC, above which the price is likely to revisit the 0.0375BTC resistance.
Overall, ETH/BTC is currently approaching a major support area near 0.0320BTC, which is likely to produce a fresh upward move. On the upside, a push above the 0.0375BTC barrier may take the price towards the 0.0400BTC level. Similarly, ETH/USD must stay above $120.00 for a bounce to $150.00.
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Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. Tou can follow him on twitter at @aayushJS or reach out to him at aayush[at]coingape.com
