Ethereum Eyes Fresh Surge Vs Bitcoin
Ethereum is consolidating gains above 0.020 versus Bitcoin. ETH/BTC could soon restart its increase if it clears the 0.0260 resistance.
In the past few days, Ethereum gained traction above the $2,000 and $2,200 resistance levels. ETH even gained pace for a move above the 0.020 resistance zone versus Bitcoin, opening the gates for a reversal. More importantly, ETH/BTC cleared a key bearish trend line with resistance at 0.0230 on the daily chart.
There was a close above the 0.0220 BTC pivot level and the 50-day simple moving average (blue). However, the bears were active near the 0.0260 BTC zone.
The price started a consolidation phase below the 0.0260 BTC resistance, but it stayed above the 50-day simple moving average (blue) and the 23.6% Fib retracement level of the main decline from the 0.0408 swing high to the 0.01765 low.
Ethereum is now consolidating and showing positive signs. If the bulls remain in action, there could be a fresh lift-off. Immediate resistance on the upside sits near the 0.0250 BTC zone.
The next major hurdle sits at 0.0260 BTC. A successful daily close above the 0.0260 BTC zone could confirm a medium-term reversal. In the stated case, Ethereum could rise toward the 0.030 level vs Bitcoin.
The next major resistance is 0.0320. It coincides with the 61.8% Fib retracement level of the main decline from the 0.0408 swing high to the 0.01765 low. Any more gains might send ETH toward 0.0350 in the coming weeks.
Downside Break In ETH/BTC?
If ETH/BTC struggles to clear the 0.0260 resistance, there could be another decline. The first major support might be near the 0.0230 level and the 50-day simple moving average (blue).
The next key support is 0.020. If the bulls fail to protect the 0.020 zone, the price could accelerate lower. In the stated case, Ethereum may perhaps revisit the main support at 0.0175 BTC.
Overall, Ethereum is showing positive signs above 0.0220 versus Bitcoin below 0.0500. If ETH/BTC settles above 0.0260, there could be a strong surge. On the other hand, the price might retest the key support at 0.020.