Ethereum price extended losses below the 0.0300TC support against bitcoin. ETH/BTC may correct higher in the short term, but it is likely to face sellers near 0.0308BTC.
- Ethereum price failed to recover and declined below the 0.0300BTC support level.
- ETH/BTC is still trading below a crucial bearish trend line with resistance at 0.0308BTC on the 4-hours chart.
- ETH price may correct higher in the short term, but it could struggle near 0.0308BTC and 0.0310BTC.
Ethereum Price Analysis (ETH/BTC)
This week, there were heavy declines in Ethereum price below 0.0300BTC versus bitcoin and below $150.00 against the US Dollar. The downward move gained pace once there was a close below the 0.0300BTC support in ETH to BTC.
The 4-hours chart of ETH/BTC indicates that the price fell significantly towards the 0.0285BTC support and settled below the 50 simple moving average (4-hours). A new monthly low was formed at 0.0287BTC and later the price started consolidating losses.
The price recently recovered above the 0.0292BTC level and the 23.6% Fib retracement level of the recent slide from the 0.03199BTC high to 0.0287BTC low. The current price action is still very bearish below 0.0300BTC, but there are chances of further upsides in the short term.
On the upside, there is a major resistance formed near the 0.0308BTC and 0.0310BTC levels. More importantly, there is a crucial bearish trend line in place with resistance at 0.0308BTC on the same chart.
Around the trend line, the 50% Fib retracement level of the recent slide from the 0.03199BTC high to 0.0287BTC low is also positioned. Therefore, if the price corrects higher from the current levels, it could struggle to break the 0.0308BTC and 0.0310BTC resistance levels.
On the downside, an initial support is at 0.0290BTC, below which Ethereum could slide below the 0.0287BTC swing low. The next major support for ETH/BTC is near the 0.0280BTC level. Going forward, the next move in ETH/BTC and ETH/USD depends whether bitcoin price manages to start a decent recovery above $5,000.
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