Key Takeaways:
- Ethereum started a fresh increase from the 0.050 support versus Bitcoin.
- ETH/BTC broke a crucial declining channel with resistance at 0.0580 on the weekly chart.
- The price could continue to move up if it clears the 50-week simple moving average (blue) at 0.0610.
New Delhi(Coinchapter.com): Ethereum is eyeing a bullish reversal versus Bitcoin. ETH/BTC could gain bullish momentum if it clears 0.0610 and 0.0620.
Ethereum Price Holds Ground Vs Bitcoin
In the past ETH/BTC forecast, we discussed the chances of a sharp decline in Ethereum if it fails to stay above 0.050 vs Bitcoin. The bears did make another attempt to clear the 0.050 support zone, but they failed to gain strength.
A swing low was formed near 0.0478BTC and the price started a recovery wave. Recently, Bitcoin price saw a bearish reaction from $49,000 and declined below $43,000. However, Ethereum was stable and remained above $2,400. As a result, ETH/BTC started a steady increase above the 0.0550 resistance zone.
Ethereum was able to clear a crucial declining channel with resistance at 0.0580 on the weekly chart. There was a break above the 23.6% Fib retracement level of the key decline from the 0.0855 swing high to the 0.0498 low.
The price is now stable above the 0.0585 level. However, the bulls are facing another major hurdle at 0.0610 and 0.0620. It is close to the 50-week simple moving average (blue).
A successful weekly close above the 50-week simple moving average (blue) could confirm a medium-term reversal. In the stated case, Ethereum could rise toward the 0.0667 level vs Bitcoin. It coincides with the 50% Fib retracement level of the key decline from the 0.0855 swing high to the 0.0498 low. The next major resistance is 0.0765. Any more gains might send ETH toward 0.0850 in the coming weeks.
Another Drop in ETH/BTC?
If ETH/BTC struggles to clear the 50-week simple moving average (blue), there could be a pullback. The first major support might be near the same channel trend line at 0.0560.
If the bulls fail to protect the channel support, the recent breakout could turn out to be fake. In the stated case, Ethereum may perhaps revisit the main support at 0.050BTC.
Overall, Ethereum is showing reversal signs versus Bitcoin above 0.0565. If ETH/BTC settles above 0.0620, there could be a bullish continuation. On the other hand, the price might retest the key support at 0.050.
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