Ethereum price after a long struggle found support at 0.046BTC against the bitcoin. ETH/BTC has to gain momentum above 0.055BTC to remain in the bullish zone.
Key Talking Points
Ethereum price was under a lot of pressure and traded towards 0.045BTC before finding bids against the bitcoin.
The ETH/BTC pair is currently attempting an upside break above a bearish trend line at 0.054BTC on the 2-hours chart (data feed from Poloniex).
The pair has to settle above 0.055BTC to extend gains in the near term.
Ethereum Price Chart Analysis
During the past few weeks, Ethereum price faced a lot of pressure versus bitcoin and declined below 0.050BTC. The ETH/BTC pair recently formed a low at 0.0468BTC from where a recovery wave was initiated.
The past two sessions were positive, as the pair was able to recover sharply and broke the 23.6% Fibonacci retracement level of the last decline from the 0.063BTC high to 0.046BTC low. It also managed to surpass the 0.050BTC handle, which is a positive sign.
At the moment, the pair is attempting a close above a bearish trend line at 0.054BTC on the 2-hours chart. The trend line resistance is significant at 0.054BTC-0.055BTC since the 100 simple moving average (2-hour) is positioned around it.
Moreover, the 50% Fibonacci retracement level of the last decline from the 0.063BTC high to 0.046BTC low is near 0.0546BTC. Therefore, a proper close above 0.055BTC would mean a change in bias to bullish for ETH.
Once there is a close above 0.055BTC, the pair could easily move higher towards 0.060BTC and 0.062BTC. On the downside, the broken resistance at 0.050BTC is now a decent support. Below 0.050BTC, the price would be back in the bearish zone and will most likely retest the 0.045BTC swing low.
The 2-hour RSI for ETH/BTC has reached extreme overbought levels, which means there can be a short-term consolidation near 0.054BTC before the pair attempts further upsides in the near term.