Ethereum price remained in a bearish zone below 0.0470BTC against bitcoin. ETH/BTC is most likely to extend losses towards the 0.0400BTC level.
- Ethereum’s correction was limited as sellers appeared near 0.0470BTC and 0.0480BTC versus bitcoin.
- There are two bearish trend lines in place with resistance near 0.0430BTC and 0.0438BTC on the 2-hours chart of ETH/BTC.
- The price is currently under a lot of pressure and remains at a risk below 0.0415BTC in the near term.
Ethereum price analysis (ETH/BTC)
In the last analysis, we discussed that there could be a tiny recovery in Ethereum above the 0.0450BTC, but upsides are likely to be capped. ETH to BTC did move higher, but it faced a strong resistance near the 0.0480BTC level.
The 2-hours chart of ETH/BTC is under a lot of pressure after buyers failed to push the price above the 0.0480BTC-0.0490BTC resistance zone. A fresh downside move was initiated and the price tumbled below the 0.0450BTC and 0.0440BTC support levels.
There was also a close below the 0.0450BTC support and the 50 simple moving average (2-hours). The recent low was formed at 0.0415BTC before the price recovered a few points.
There was a test of the 23.6% Fibonacci retracement level of the last major decline from the 0.0474BTC high to 0.0415BTC low. On the upside, there are many resistances aligned near the 0.0430BTC and 0.0450BTC levels.
There are also two bearish trend lines in place with resistance near 0.0430BTC and 0.0438BTC on the same chart. The second trend line is very important since it coincides with the 0.0440BTC resistance and the 50 SMA.
Therefore, if the price corrects higher, the 0.0430BTC and 0.0440BTC levels are likely to act as a key barrier for Ethereum buyers. Above 0.0440BTC, the next resistance is the 50% Fibonacci retracement level of the last major decline from the 0.0474BTC high to 0.0415BTC low near 0.0445BTC.
Overall, ETH/BTC remains in a downtrend and if there is a break below the recent low of 0.0415BTC, there could be heavy slides towards the 0.0400BTC and 0.0380BTC levels. On the flip side, a proper close above 0.0450BTC may perhaps push Ethereum price towards the 0.0500BTC resistance.
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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