Ethereum price started a recovery from 0.0404BTC against bitcoin. ETH/BTC has to settle above 0.0480BTC to gain traction in the near term.
Key Talking Points
- Ethereum price started an upside correction from the 0.0404BTC support area against the bitcoin.
- There is a key contracting triangle forming with resistance near 0.0460BTC on the 2-hour chart of the ETH/BTC pair (data feed from Poloniex).
- The pair has to break and settle above 0.046BTC-0.0408BTC for further gains.
Ethereum Price Chart Analysis
After a major downside move, Ethereum price found support near 0.0404BTC against bitcoin. The price started an upside move and was able to trade above the 23.6% Fib retracement level of the last wave from the 0.0540BTC high to 0.0404BTC low.
There was also a break above a major connecting bearish trend line with resistance at 0.0440BTC on the 2-hour chart of the ETH/BTC pair. However, the 0.0480BTC resistance and the 100 simple moving average (2-hour) prevented further gains.
Moreover, the 50% Fib retracement level of the last wave from the 0.0540BTC high to 0.0404BTC low also acted as a hurdle. The pair moved down and tested the 0.0440BTC support. It seems like there is a key contracting triangle forming with resistance near 0.0460BTC on the same chart.
On the upside, the triangle resistance at 0.0460BTC is around the 100 simple moving average (2-hour). Therefore, a break above 0.0460BTC won’t be easy followed by 0.0480BTC.
Should there be a break above 0.0480BTC, there are chances of more gains above 0.050BTC and the 61.8% Fib retracement level of the last wave from the 0.054BTC high to 0.0404BTC low in the near term.
On the flip side, if the pair fails to move above 0.0480BTC and breaks 0.044BTC, it could decline further and retest the last swing low of 0.0404BTC.
The overall trend is still bearish and only a proper 2-hour close above 0.046BTC and 0.048BTC would negate the current market sentiment and call for an upside push in ETH/BTC toward 0.0550BTC.
Trade safe traders and do not overtrade!
