Ethereum price declined heavily below 0.0500BTC against bitcoin. However, ETH/BTC is now forming a support base for a short-term recovery.
- Ethereum struggled a lot recently and declined below 0.0550BTC and 0.0500BTC versus bitcoin.
- There is a crucial bearish trend line in place with resistance near 0.0502BTC on the 4-hours chart of ETH/BTC.
- The price is currently recovering and it may perhaps correct above 0.0480BTC in the near term.
Ethereum price analysis (ETH/BTC)
During the past few weeks, we saw a nasty decline in Ethereum from well above 0.0580BTC. ETH to BTC tumbled and broke many supports like 0.0550BTC, 0.0500BTC and 0.0480BTC.
The 4-hours chart of ETH/BTC indicates that the price almost tested the 0.0400BTC support area. A new monthly low was formed at 0.0419BTC and later the price started an upward correction.
The price moved above the 0.0430BTC and 0.0440BTC levels and is currently forming a short-term breakout pattern with resistance at 0.0462BTC on the same chart.
Moreover, it is currently testing the 23.6% Fibonacci retracement level of the last significant drop from the 0.0587BTC high to 0.0419BTC low. Should there be a break above the triangle resistance and 0.0465BTC, the price could accelerate the current recovery.
The next major hurdle for buyers is near the 0.0500BTC level and a crucial bearish trend line with resistance near 0.0502BTC. More importantly, the 50% Fibonacci retracement level of the last significant drop from the 0.0587BTC high to 0.0419BTC low is positioned at 0.0503BTC.
Therefore, if Ethereum price corrects above the 0.0465BTC resistance, it will most likely find a strong resistance near the 0.0500BTC level. The last but not the least, the 50 simple moving average (4-hours, close) is also positioned near the 0.0505BTC level to prevent further gains.
On the flip side, if the price fails to move past the triangle and breaks the 0.0450BTC support, it could revisit the 0.0430BTC level. Below this, the price might even test the 0.0420BTC level.
Overall, ETH/BTC is trading near a critical juncture and it will either break the 0.0465BTC resistance to rebound further or break the 0.0450BTC support to resume its downtrend.
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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