Ethereum price is consolidating below the 0.0316BTC resistance against bitcoin. ETH/BTC is likely to make the next big move either above 0.0316BTC or below 0.0308BTC.
- Ethereum price is currently trading above the 0.0308BTC support level.
- ETH/BTC is struggling to surpass two crucial bearish trend lines with resistance near 0.0316BTC on the 4-hours chart.
- ETH price could surge higher if buyers push the price above the 0.0316BTC resistance.
Ethereum Price Analysis (ETH/BTC)
During the past few days, Ethereum price traded in a tight range above the 0.0308BTC support versus bitcoin. However, ETH to BTC seems to be preparing for the next major move either above 0.0316BTC or below 0.0308BTC.
The 4-hours chart of ETH/BTC indicates that the price tested the 0.0308BTC level on many occasions and recovered higher. It moved above the 23.6% Fib retracement level of the last slide from the 0.0346BTC high to 0.0303BTC low.
However, the price failed to gain momentum above the 0.0315BTC and 0.0316BTC levels. It is currently trading below the 0.0313BTC level and the 50 simple moving average (4-hours).
On the upside, there are two crucial bearish trend lines formed with resistance near 0.0316BTC on the same chart. If there is an upside break above these trend lines, the price may test the 0.0320BTC resistance.
Finally, a successful close above the 0.0320BTC resistance is likely to open the doors for a larger upward move above the 0.0350BTC level. On the flip side, if the price fails to move past the 0.0316BTC resistance, there is a risk of a downside break below the 0.0308BTC support.
If sellers gain momentum below the 0.0308BTC support, there is a risk of further declines towards the 0.0300BTC support. Having said that, considering the current price action, it won’t be easy for sellers to push the price below the 0.0300BTC support zone.
Overall, Ethereum price is preparing for the next significant break either above 0.0316BTC or below 0.0308BTC. The chances of an upside break are very high, but it needs a convincing close above the 0.0316BTC and 0.0320BTC resistance levels.
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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