Ethereum price traded to a new yearly low below 0.0300BTC against bitcoin and below $200 against the US Dollar. ETH/BTC is currently correcting higher, but it could face sellers near 0.0314BTC.
- Ethereum dropped heavily below 0.0300BTC and traded close to 0.0270BTC.
- There is a significant bearish trend line formed with resistance at 0.0315BTC on the 4-hours chart of ETH/BTC.
- ETH price is likely to find a strong selling interest above 0.0310BTC in the near term.
Ethereum price analysis (ETH/BTC)
In the last analysis, we discussed that Ethereum price is in big trouble below 0.0350BTC versus bitcoin. ETH to BTC remained in a nasty downtrend and declined below the 0.0320BTC and 0.0300BTC support levels.
The 4-hours chart of ETH/BTC indicates that the price even broke the 0.0280BTC support and traded to a new yearly low at 0.0269BTC. Later, there was a short-term consolidation followed by an upside correction above the 0.0280BTC level.
During the rise, there was a break above the 23.6% Fibonacci retracement level of the last key decline from the 0.0358BTC high to 0.0269BTC low. Moreover, buyers pushed the price above a connecting bearish trend line with resistance at 0.0290BTC on the same chart.
It opened the doors for more gains and the price is currently testing the 0.0300BTC resistance, which was a support earlier. Above this, the next resistance is near the 50% Fibonacci retracement level of the last key decline from the 0.0358BTC high to 0.0269BTC low at 0.0314BTC.
More importantly, there is a significant bearish trend line formed with resistance at 0.0315BTC. Lastly, the 50 simple moving average (4-hours) is positioned near the 0.0323BTC.
Therefore, if the price continues to move higher, it could face a lot of offers near the 0.0315BTC and 0.0320BTC resistances. A proper close above 0.0323BTC may well clear the path for a test of 0.0350BTC.
On the other hand, if Ethereum price fails to gain momentum above 0.0315BTC, it may decline once again below 0.0280BTC. Similarly, ETH/USD must break the $200 and $220 resistance levels. If not, there could be a fresh downward move towards $160 in the near term.
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