- September 14, 2018
- Posted by: admin
- Category: Forexlive Breaking news
Over the past couple of months, we’ve seen Ethereum’s (ETH) value declined heavily against Bitcoin (BTC). Last Wednesday, ETH/BTC printed a new 2018 low at 0.0271 Sat/Satoshi – the smallest unit of the bitcoin currency recorded on the blockchain.
Looking at the 4-hour chart of ETH/BTC, it indicates that the trend remains extremely bearish as the price continues to create lower and lower highs. I also like to use the 200-period (4HR) moving average to identify the trend direction and movement. For ETH/BTC, as the price is below a declining 200-period, we’re likely in a downtrend. This indicator helps me to recognize the overall market trend and solidify my technical stance.
I would like to see a steeper price correction before another bearish rally. Drawing a Fibonacci retracement level from the August 18 high of 0.0486 Sat down to Wednesday’s low of 0.0269 Sat, we obtain the 0.0352 to 0.0403 range (38.2% to 61.8% Fibonacci levels). Moreover, I think that traders might be willing to short ETH/BTC in this Fibonacci range, aiming for the December 8 low of 0.0240 Sat.
The August 18 high of 0.0486 will serve as my trend-defining level, and a successful break to this level will invalidate the bearish outlook.