Ethereum price declined further and tested the 0.0400BTC support against bitcoin. ETH/BTC is correcting higher, but it remains to sell on rallies.
- Ethereum extended its decline towards a key support at 0.0400BTC before correcting higher.
- There was a break below a major bullish trend line with support at 0.0410BTC on the 2-hours chart of ETH/BTC.
- ETH price remains in a downtrend and it could even break the 0.0400BTC support.
Ethereum price analysis [ETH/BTC]
In the last analysis, we discussed that Ethereum price could extend its decline towards the 0.0400BTC support versus bitcoin. ETH to BTC did move lower and spiked below the 0.0400BTC level before correcting a few points.
The 2-hours chart of ETH/BTC indicates that the price is clearly in a downtrend and it formed a key top near the 0.0420BTC level. It dropped heavily and broke the 0.0410BTC and 0.0400TC supports to form a new monthly low at 0.0399BTC.
During the decline, there was a break below a major bullish trend line with support at 0.0410BTC on the 2-hours chart of ETH/BTC. The pair settled below the 0.0410BTC support and the 50 simple moving average (2-hours).
Later, there was an upside correction above the 0.0401BTC level, but it seems like the price is struggling to move above the 23.6% Fibonacci retracement level of the last slide from the 0.0420BTC high to 0.0399BTC low.
If the price breaks the 0.0405BTC resistance, it could test an important resistance near the 0.0407BTC level, which coincides with the previous support and a bearish trend line on the same chart.
Above this, there is a significant resistance near 0.0410BTC, the 50 SMA, and the 50% Fibonacci retracement level of the last slide from the 0.0420BTC high to 0.0399BTC low.
Overall, Ethereum remains under a lot of pressure below 0.0410BTC against bitcoin. If there is a decent correction, it could be seen as a selling opportunity. On the downside, the 0.0400BTC level is a strong support, below which the price may possibly nosedive towards the 0.0380BTC and 0.0375BTC levels 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