Ethereum price declined heavily to new lows below 0.0300 BTC and later recovered against bitcoin. ETH/BTC must move above 0.0324BTC to rebound further.
- Ethereum price fell sharply below the 0.0320BTC and 0.0300BTC support levels.
- ETH/BTC declined below a major triangle support at 0.0322BTC on the 4-hours chart.
- ETH price traded below the 0.0300BTC support level and later recovered sharply.
Ethereum Price Analysis (ETH/BTC)
There were more bearish moves in Ethereum price below 0.0320BTC versus bitcoin and below $200.00 against the US Dollar. Sellers managed to push ETH to BTC below the 0.0300BTC support as well, but the price later jumped back sharply.
The 4-hours chart of ETH/BTC indicates that the price formed a major top near the 0.0340BTC level and later nosedived below 50 simple moving average (4-hours). The crypto market as a whole was under a lot of pressure after bitcoin price declined below $6k support.
During the decline, ETH/BTC traded below many support levels, including 0.0328BTC and 0.0318BTC. Moreover, there was a break below a major triangle support at 0.0322BTC, which resulted in a drop below the key 0.0308BTC support.
A new monthly low was formed at 0.0297BTC and later the price recovered above the 23.6% Fib retracement level of the recent decline from the 0.0340BTC high to 0.0297BTC.
However, the current rebound is facing resistance near the 0.0320BTC level. It also coincides with the previous support, the broken triangle, and the 50% Fib retracement level of the recent decline from the 0.0340BTC high to 0.0297BTC.
In order to recover further, the price must move above the 0.0320BTC resistance and the 50 simple moving average (4-hours). If buyers fail to push the price above the 0.0320BTC resistance, Ethereum could decline once again towards the 0.0300BTC level.
Overall, the current market sentiment is super bearish for bitcoin and Ethereum, but there are chances of an upward move above 0.0320BTC resistance in ETH/BTC. The next major resistance above the 0.0320BTC level is close to the 0.0340BTC level where sellers are likely to emerge.
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