NEW DELHI (CoinChapter.com) — Ethereum shows many bearish signs versus Bitcoin. ETH/BTC risks a major drop if the bulls fail to defend the 0.050 support.
Ethereum Price On The Edge Vs Bitcoin
After forming a double top near 0.0855, Ethereum saw a fresh decline vs Bitcoin. There was a steady drop below the 0.080 and 0.075 levels. The bears even pushed the price below the 0.060 support zone and the 50-week simple moving average (blue).
Finally, the bulls took a strong stand near the 0.050 support zone. In the last few weeks, ETH/BTC made a few attempts to start a recovery wave from 0.050. However, the bears remained active below the 0.0585 level.
The recent low was formed near 0.0498 and the price is now consolidating in a tiny range. It seems like Ethereum is struggling to start a recovery wave. ETH/USD also failed to gain bullish momentum above $2,300 while Bitcoin challenged $44,300.
This could be a bearish sign and might increase selling pressure on ETH/BTC in the coming days. The main support sits at 0.050. A clear move below the 0.050 support and a weekly close below the stated support might confirm a downside break. In the stated case, the Ethereum price could decline heavily and might test the 0.040 level. The next major support sits at 0.0265.
Fresh Recovery in ETH/BTC?
Conversely, Ethereum might attempt a recovery wave from 0.050BTC. On the upside, it could face resistance near the 0.0580 level. There is also an important bearish trend line with resistance at 0.0580 on the weekly chart.
The trend line is close to the 23.6% Fib retracement level of the main drop from the 0.0855 swing high to the 0.0498 low. A clear move above the trend line resistance might spark a steady increase toward the 50-week simple moving average (blue) at 0.0630.
The next major resistance is near the 50% Fib retracement level of the main drop from the 0.0855 swing high to the 0.0498 low at 0.0675. Any more gains might send ETH toward 0.0850.
Overall, Ethereum is struggling to stay above the main breakdown support at 0.050 versus Bitcoin. If ETH/BTC settles below 0.050, there could be a major drop. On the other hand, the price might recover above the trend line and revisit 0.0675.
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