Ethereum price trimmed most of its gains against bitcoin. ETH/BTC is now below 0.0490BTC and is struggling to hold ground.
Key Talking Points
- Ethereum price failed near 0.0591BTC and started a downside move against the bitcoin.
- There is a major bullish trend line forming with support at 0.0480BTC on the 2-hour chart of the ETH/BTC pair (data feed from Poloniex).
- The pair has to stay above the 0.0480BTC and 0.0460BTC support levels to recover in the short term.
Ethereum Price Chart Analysis
There were decent gains this past week in Ethereum price as it moved above the 0.0550BTC resistance against bitcoin. The price traded towards the 0.060BTC level and formed a high at 0.0591BTC before starting a new downside wave.
There was a slow and steady decline as the price moved below the 50% Fib retracement level of the last wave from the 0.0408BTC low to 0.0591BTC high. It is currently below the 0.050BTC support and struggling to hold key support levels.
At the moment, the price is trading near the 61.8% Fib retracement level of the last wave from the 0.0408BTC low to 0.0591BTC high at 0.0476BTC. Below the mentioned 0.0476BTC, there is a major bullish trend line forming with support at 0.0480BTC on the 2-hour chart of the ETH/BTC pair.
It seems like the pair is now below the 100 simple moving average (2-hour) and eyeing further downsides toward 0.0460BTC. Looking at the current price action, it won’t be easy for buyers to defend losses below 0.050BTC.
Should there be a close above 0.050BTC and a bearish trend line on the same chart, the pair might recover. On the upside, the next major resistance is close to the 0.0540BTC level.
On the downside, if ETH/BTC fails to stay above 0.046BTC, then the pair could even move back towards the 0.042BTC swing low in the near term.
The overall bias is negative at this stage unless buyers push the price back above 0.050BTC.
Trade safe traders and do not overtrade!