Ethereum price failed to settle above 0.0360BTC and declined against bitcoin. ETH/BTC is currently at risk of more losses towards the 0.0326BTC in the near term.
- Ethereum is trading above the key 0.0335BTC support level.
- There is a major breakout pattern in place with resistance at 0.0352BTC on the 4-hours chart of ETH/BTC.
- ETH price is likely to struggle to break the 0.0350BTC and 0.0360BTC resistance levels.
Ethereum Price Analysis (ETH/BTC)
After forming a decent support near 0.0325BTC, Ethereum price recovered above the 0.0350BTC resistance versus bitcoin. ETH to BTC traded towards the 0.0360BTC level where sellers emerged and protected more gains.
The 4-hours chart of ETH/BTC indicates that the price traded as high as 0.0360BTC and later started a downside move. It declined below the 0.0345BTC support level and settled below the 50 simple moving average (4-hours).
More importantly, there was a break below the 61.8% Fibonacci retracement level of the last wave from the 0.0326BTC low to 0.0360BTC high. However, the downside move was protected by a crucial bullish trend line with current support at 0.0336BTC.
At the outset, it seems like there is a major breakout pattern in place with resistance at 0.0352BTC on the same chart. On the upside, an initial resistance is near the 0.0345BTC level, above which sellers are most likely to defend more gains above the 0.0350BTC level.
To move into a positive zone, the price has to break the 0.0350BTC, 0.0352BTC, and 0.0360BTC resistance levels. On the other hand, a downside break below the triangle support could open the doors for a push towards the 0.0326BTC low.
The final bearish target could be the 1.236 Fib extension level of the last wave from the 0.0326BTC low to 0.0360BTC high at 0.0318BTC. The current price action is indicating a short-term bearish bias below the 0.0345BTC and the 100 hourly SMA.
To sum up, Ethereum price is approaching the next key break either above 0.0350BTC or below 0.0335BTC. The next move in ETH/BTC possibly depends whether ETH/USD succeeds in clearing the $235-240 resistance zone.
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