Ethereum price failed to stay above the 0.0300 support and declined heavily against bitcoin. ETH to BTC is currently trading below 0.0280 and it could continue to slide.
Key Talking Points
- Ethereum price declined heavily against bitcoin after latter once rallied above $11K and $12K.
- There is a major declining channel forming with resistance at 0.0280BTC on the 4-hours chart of the ETH/BTC pair (data feed from Poloniex).
- The pair remains in a strong downtrend and it might even trade towards 0.0250BTC.
Ethereum Price Chart Analysis
This week, there were strong gains in bitcoin price above $11,000, but Ethereum price failed to catch up against the US Dollar. As a result, there were bearish moves in ETH to BTC and the price declined sharply below the key 0.0300BTC support area.
Looking at the chart, the price remained in a strong bearish zone below the key 0.0300BTC support level and the 100 simple moving average (4-hours).
The recent decline was such that the price even broke the 0.0280BTC support level. It recently traded as low as 0.0263BTC and it could continue to decline in the near term.
An initial resistance is near the 0.0275BTC level and the 23.6% Fib retracement level of the last decline from the 0.0294BTC high to 0.0263BTC swing low. Moreover, there is a major declining channel forming with resistance at 0.0280BTC on the 4-hours chart of the ETH/BTC pair.
The channel resistance is near the 50% Fib retracement level of the last decline from the 0.0294BTC high to 0.0263BTC swing low. Therefore, a close above the channel resistance and the 0.0282BTC resistance is must for a decent recovery in Ethereum in the near term.
If Ethereum price fails to climb above the 0.0280 level against bitcoin, there are chances of more losses. An initial support is near the 0.0260BTC level, below which ETH could even trade towards the 0.0250BTC level in the near term.
On the upside, a break above the 0.0280BTC resistance is likely to set the pace for a decent recovery towards the 0.0300BTC resistance.
The market data is provided by TradingView.