NEW DELHI (CoinChapter.com) — Ethereum to Bitcoin (ETH/BTC) price has been pursuing a downtrend below 0.060 BTC. As of Nov. 28, the pair was testing key support at 0.050 BTC, below which it could decline heavily.
Ethereum to Bitcoin Price Action
In the past few weeks, the Ethereum to Bitcoin exchange rate failed to move beyond 0.085 BTC, a long-standing resistance level. As a result, bears took control and pushed the ETH/BTC rate below 0.0720 BTC, a pivot level coinciding with the 50-week simple moving average (blue). The price even settled below the 0.060 support zone.
The Ethereum to Bitcoin chart shows the price consolidating above an important support zone at around 0.0512 BTC and 0.05 BTC. The recent low was formed near 0.0511 BTC before the pair started a consolidation phase.
The last 3-4 candles signal downtrend exhaustion, but the Ethereum to Bitcoin price seems to be lacking bullish momentum. Besides, ETH/USD is still struggling to clear the $2,150 resistance. If it breaks the $1,920 support, there could be an increase in selling pressure.
If there is a fresh recovery attempt in ETH/BTC, the pair could face resistance near the 0.0560 BTC level. The first major resistance is 0.0590 BTC. There is also a crucial bearish trend line in place with resistance at 0.0592 BTC on the weekly chart. The trend line is close to the 23.6% Fib retracement level of the downward move from the 0.0855 BTC swing high to the 0.0511 BTC low.
If the Ethereum to Bitcoin exchange rate clears the trend line resistance, it could test the 50-week simple moving average (blue) at 0.0650 BTC level. The main downtrend resistance is near the 50% Fib retracement level of the downward move from the 0.0855 BTC swing high to the low at 0.0684 BTC.
A weekly close above the 0.0650 BTC and 0.0684 BTC levels could set the pace for a steady uptrend toward 0.085 BTC. Any more gains might send ETH toward 0.10 BTC.
More Downsides in ETH/BTC?
Conversely, the Ethereum to Bitcoin price might fail to clear the trend line resistance of 0.060 BTC. In the stated case, the bears could attempt a crucial downside break below the 0.050 BTC support. If they succeed, the price could dive toward the 0.0402 BTC support. Any more losses could send the price toward 0.0325 BTC.
Overall, the Ethereum to Bitcoin price is consolidating above significant support at 0.050 BTC. If ETH/BTC fails to recover above 0.0590 and 0.060, there could be a strong drop to 0.0402. On the other hand, the price might start a steady increase toward 0.0650 or 0.0684.