Ethereum price failed to stay above the 0.0314 support area against bitcoin and declined sharply. ETH to BTC is under a lot of pressure and it remains sell on rallies near 0.0315.
Key Talking Points
- Ethereum price failed to stay above a crucial support near the 0.0314 level against bitcoin.
- There is a major bearish trend line in place with resistance at 0.0315BTC on the 4-hours chart of the ETH/BTC pair (data feed from Poloniex).
- The pair could correct higher, but it is likely to face sellers near 0.0315BTC in the near term.
Ethereum Price Chart Analysis
In the past two sessions, there was a strong decline in bitcoin, litecoin, Ethereum, EOS, bitcoin cash, ripple, and others against the US Dollar. ETH to BTC also faced an increased selling pressure after it broke the key support near the 0.0314 level.
Looking at the chart, the price failed to break the 0.0332BTC resistance area and declined sharply below 0.0325BTC plus the 100 simple moving average (4-hours). Sellers took control and pushed the price below the 0.0314BTC and 0.0310BTC support levels.
A new monthly low was formed near 0.0295BTC and the price is currently consolidating losses. It is testing the 23.6% Fib retracement level of the last decline from the 0.0332BTC high to 0.0295BTC low.
It seems like it could correct above the 0.0310BTC resistance in the near term. However, there are many hurdles for buyers near the 0.0314BTC and 0.0315BTC levels. There is also a major bearish trend line in place with resistance at 0.0315BTC on the 4-hours chart of the ETH/BTC pair.
The 50% Fib retracement level of the last decline from the 0.0332BTC high to 0.0295BTC low is also positioned near the 0.0314BTC level to act as a strong resistance.
Therefore, if there is an upside correction in Ethereum price, sellers are likely to protect gains near the 0.0315BTC resistance zone. On the downside, an initial support is at 0.0295BTC, below which ETH is likely to visit the 0.0290BTC support area in the coming sessions. Any further losses may perhaps push the price towards the 0.0282BTC support.
The market data is provided by TradingView.
