Ethereum price remained supported above the 0.0300BTC level against bitcoin. ETH/BTC could trade higher in the short term towards 0.0370BTC.
- Ethereum is holding important supports at 0.0320BTC and 0.0300BTC.
- There is a key contracting triangle formed with resistance at 0.0345BTC on the 4-hours chart of ETH/BTC.
- ETH price is likely to break higher towards the 0.0360BTC and 0.0370BTC levels in the near term.
Ethereum price analysis [ETH/BTC]
After trading above the 0.0370BTC level, Ethereum price started a downside correction versus bitcoin. ETH to BTC declined below the 0.0350BTC and 0.330BTC levels before buyers appeared near 0.0320BTC.
The 4-hours chart of ETH/BTC indicates that the price traded as low as 0.0319BTC and settled below the 50 simple moving average (4-hours). Later, the price started consolidating losses and it is currently trading above 0.0320BTC.
Besides, the price is trading above the 23.6% Fibonacci retracement level of the recent decline from the 0.0376BTC high to 0.0319BTC low. On the upside, there is a strong resistance formed near the 0.0340BTC level and the 50 simple moving average (4-hours).
More importantly, there is a key contracting triangle formed with resistance at 0.0345BTC on the 4-hours chart of ETH/BTC. Above the triangle resistance, the 50% Fibonacci retracement level of the recent decline from the 0.0376BTC high to 0.0319BTC low is at 0.0347BTC.
If the price breaks the triangle resistance and then 0.0347BTC, there could be an upward motion towards the last swing high at 0.0376BTC. Above this, the price may perhaps test the 0.0400BTC resistance.
On the other hand, if Ethereum sellers succeed in clearing the triangle and the 0.0320BTC support, the price could slide sharply towards the 0.0310BTC and 0.0300BTC levels.
The current price action is positive, but buyers need to gain momentum above the 0.0340BTC level and the 50 SMA to push the price further higher. If not, there is a risk of a downside break towards the 0.0300BTC support.
Technically, Ethereum price is likely to slowly move higher as RSI is moving north and the current candle formations are positive above 0.0320BTC and the triangle support.
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