The price of Ethereum fell heavily below 0.0500 BTC compared to bitcoin. However, ETH / BTC is now forming a support base for short-term recovery.
- Ethereum has struggled very recently and dropped below 0.0550BTC and 0.0500BTC compared to bitcoin.
- There is an ongoing bearish trend line with resistance near 0.0502BTC on the 4-hour ETH / BTC chart.
- The price is currently under recovery and could perhaps correct above 0.0480BTC in the short term.
Price Analysis of Ethereum (ETH / BTC)
In recent weeks we have witnessed a bad decline of Ethereum from the well above 0.0580BTC. From ETH to BTC many media have fallen as 0.0550BTC, 0.0500BTC and 0.0480BTC.
ETH / BTC 4-hour chart indicates that the price has almost tested the 0.0400BTC support area. A new monthly minimum was formed at 0.0419BTC and subsequently the price started an upward correction.
Price has moved above levels 0 , 0430BTC and 0.0440BTC and is currently forming a short-term breakout model with resistance at 0.0462BTC on the same chart.
In addition, it is testing the 23.6% Fibonacci retracement level of the last significant fall from 0.0587BTC high to 0.0419 BTC low. Should there be a break above the resistance of the triangle and 0.0465BTC, the price could accelerate the current recovery.
The next major obstacle for buyers is near the 0.0500BTC level and a crucial bearish trend line with resistance close to 0.0502BTC. More importantly, the 50% Fibonacci retracement level of the last significant drop from 0.0587BTC raised to a low 0.0419BTC is placed at 0.0503BTC.
Therefore, if the price of Ethereum corrects above the resistance of 0.0465BTC, it will most likely find a strong resistance near the 0.0500BTC level. The last but not least, the 50 simple moving average (4 hours, close) is also positioned near the 0.0505BTC level to prevent further gains.
On the flip side, if the price can not cross the triangle and stop the 0.0450BTC support, it may revisit the 0.0430BTC level. Below this, the price could even test the 0.0420BTC level.
Overall, ETH / BTC is trading close to a critical juncture and will further stop the resistance of 0.0465BTC to rebound further or stop the 0.0450BTC support to resume its downtrend.
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