Ethereum price tumbled recently below 0.0360BTC against bitcoin and below $250 against the US Dollar. ETH/BTC is currently in a bearish zone and recoveries are likely to be capped.
- Ethereum fell significantly and broke the 0.0400BTC and 0.0350BTC supports.
- There is a crucial bearish trend line in place with resistance at 0.0370BTC on the 2-hours chart of ETH/BTC.
- ETH price is currently correcting higher, but upsides remain capped near 0.0370BTC and 0.0380BTC.
Ethereum price analysis [ETH/BTC]
In the last analysis, we discussed that Ethereum price remains sell on rallies near 0.0410BTC and 0.0420BTC versus bitcoin. ETH to BTC faced a strong selling interest recently and declined below the 0.0400BTC range support, opening the doors for more losses.
The 2-hours chart of ETH/BTC indicates that the price dropped heavily after it settled below the 0.0400BTC support. It cleared the 0.0350BTC support zone and traded towards the 0.0335BTC level.
During the decline, there was a break below a connecting support trend line at 0.0380BTC and the price settled below the 50 simple moving average (2-hours). It traded as low as 0.0333BTC and later corrected higher.
It has moved above the 23.6% Fibonacci retracement level of the recent drop from the 0.0397BTC high to 0.0333BTC low. The recovery seems positive above the 0.0350BTC level in the short term, but there are many hurdles on the upside.
An initial resistance is near the 0.0360BTC followed by a crucial bearish trend line in place with resistance at 0.0370BTC on the same chart. More importantly, the 50% Fibonacci retracement level of the recent drop from the 0.0397BTC high to 0.0333BTC low is at 0.0365BTC to act as a resistance.
A break above the trend line resistance and 0.0365BTC won’t be easy. If ETH buyers succeed, the price could trade towards the 0.0385BTC level and the 50 SMA (2-hours).
Overall, Ethereum is trading in a strong bearish zone below 0.0400BTC against bitcoin and below $250 versus the US dollar. As long as ETH is below these levels, it could continue to struggle and may perhaps drop to new monthly lows.
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