ETH/BTC breaks key support, testing a crucial zone between 0.035-0.038 BTC; failure to hold may lead to further declines.
RSI nearing oversold levels hints at a potential local bottom, but bearish momentum still dominates ETH/BTC price action.
Declining volume and a downtrend in the Stochastic oscillator suggest sellers remain in control, limiting buying strength.
Ethereum against Bitcoin has been on a downtrend recently, with the pair showing a slight decrease of 0.42%. The price currently sits at approximately 0.03568 BTC. While the broader trend remains negative, technical indicators suggest a potential reversal. This analysis looks closely at critical support levels and momentum indicators that may shape the future direction of ETH/BTC.
Testing Key Support Zones
The long-term ascending trendline was recently breached. This break signals a possible weakening of ETH’s momentum relative to Bitcoin. Moreover, the ETH/BTC price is now testing a crucial horizontal support zone between 0.035 and 0.038 BTC. This zone coincides with the 0.5 Fibonacci retracement level, adding weight to its significance.
Source: HTL-NL
Should the price fail to hold above this support, the 0.618 Fibonacci level near 0.032 BTC comes into focus. A break below this could expose the pair to further declines, possibly toward the 1.0 Fibonacci extension near 0.025 BTC. Hence, this area is pivotal for the near-term outlook.
Momentum Indicators Point to Bearish Pressure
The Relative Strength Index currently trends downward, nearing the 30-mark. The RSI frequently indicates a possible local bottom as it approaches oversold circumstances. The stochastic oscillator shows that the bearish momentum is still in control because it is still showing a downward trajectory in the oversold zone.
The stochastic oscillator may revert before it reaches an oversold condition, but this is not guaranteed. Declining volume and a lack of strong purchasing momentum indicate that sellers continue to control the market. This decrease is further highlighted by the volume bars at the chart's bottom, which show lower market involvement during the downtrend.
The post ETH/BTC Downtrend Continues, But Key Support Levels Signal Hope for a Rebound appeared first on Crypto News Land.
