The Ethereum/Bitcoin pair has been decreasing since reaching a high on May 30. The failure to break out above a significant resistance area and subsequent decline suggest that the price might have begun a correction.
ETH/USD, however, has yet to break down from its long-term confluence of support levels.
ETH Trading Range
The Ethereum price reached a local high of ₿0.0255 on May 30 but has been decreasing since. This high is extremely important since it validates the ₿0.0255 area as resistance. While the price moved above this level in April, that increase now seems more like a deviation above the range high rather than a breakout due to the inability of the price to move above on the second try.
Currently, the Ethereum price has begun to decrease after generating considerable bearish divergence in the daily RSI. This is a sign that increases the legitimacy of the downward movement. If the price continues decreasing, the closest support level is found at ₿0.023.
Well-known trader @TraderX0X0 has a similar assessment, claiming that the price will initially fall to ₿0.023 before eventually going down to ₿0.02.
In the shorter-term, Ethereum is following an ascending support line, currently having validated it for the fourth time. However, the price has lost the support of the 200-day MA, above which it had been trading throughout the length of this entire ascending support line.
The 0.5 Fibonacci level of the entire upward move is also found at ₿0.023, aligning with our long-term support area and making it a very likely level for a reversal.
The Ethereum/USD chart has yet to break down from its long-term ascending support line, which had been in place since March 13. In addition, it is trading inside the $217 support area, having just initiated a slight bounce. Therefore, the chart looks less bearish than its ETH/ BTC counterpart.
In addition, the price has also found support above its 50-day MA. As long as the price is trading above these two support areas, it should be able to make another attempt at breaking out above $245.
Conversely, if the support fails, ETH could decrease all the way to the 0.5 Fib level of the entire increase and the closest support area, found at $175. It’s also important to note that volume has been quite low as of late.
Source: Be In Crypto