Ethereum price started a solid upward move above the 0.0318BTC resistance against bitcoin. ETH/BTC is currently correcting lower, but dips remain supported near 0.0325BTC.
- Ethereum price broke a crucial resistance near 0.0318BTC to move into a bullish zone.
- ETH/BTC remains supported on dips near 0.0325BTC and a bullish trend line on the 4-hours chart.
- ETH price is likely to bounce back sooner or later above the 0.0340BTC resistance.
Ethereum Price Analysis (ETH/BTC)
In the last analysis, we discussed a crucial resistance near 0.0316BTC and 0.0318BTC in Ethereum price versus bitcoin. There was a nice upward move recently and ETH to BTC broke both resistance and then 0.0320BTC to move into a bullish zone.
The 4-hours chart of ETH/BTC indicates that the price formed a solid support near the 0.0310BTC and later started a bullish wave. The price settled above the 0.0318BTC and 0.0320BTC resistance levels plus the 50 simple moving average (4-hours).
The upside break was convincing as the price surpassed the 0.0330BTC and 0.0340BTC levels. A new monthly high was formed at 0.0340BTC before the price started a downside correction.
Sellers recently pushed the price below 0.0335BTC and the 23.6% Fib retracement level of the last rise from the 0.0309BTC low to 0.0340BTC high. However, there are many supports on the downside above the 0.0320BTC level.
An initial support is at 0.0328BTC, below which the price could test the 0.0325BTC support and the 50% Fib retracement level of the last rise from the 0.0309BTC low to 0.0340BTC high.
Moreover, there is also a major bullish trend line with support at 0.0322BTC on the same chart. Therefore, if the pair continues to correct lower, it will most likely find a strong buying interest near the 0.0325BTC and 0.0322BTC levels.
Once the current correction wave is complete, Ethereum price is likely to resume its upward move above the 0.0340BTC level. The main hurdle for buyers above the 0.0340BTC level is near the 0.0350BTC zone. Overall, the current market sentiment is positive and both ETH/USD and ETH/BTC remains supported for more gains.
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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