ETH/BTC technical analysis: correction is overdue
14:11, 7 August 2020
The ETH/BTC pair has been experiencing extreme volatility, as both Ethereum and Bitcoin surge towards fresh 2020 trading highs.
ETH/BTC technical analysis shows that the ETH/BTC pair could stage a much-needed downside correction.
ETH/BTC medium-term price trend
ETH/BTC analysis shows that the pair recently traded to its highest level since April 2019, following a breakout rally towards the $0.0350 level.
Looking at the daily time frame, the ETH/BTC pair has reached the top of a rising price channel and is struggling to break higher.
Additionally, the ETH/USD pair appears ripe for a pullback, as it struggles around the $0.0350 level.
Therefore, a bearish correction back towards the bottom of the rising price channel may take place.
According to technical analysis, a break under the $0.0320 level exposes the ETH/BTC pair to further losses towards the $0.0300 and, possibly, the $0.0280 level.
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ETH/BTC short-term price trend
ETH/BTC analysis shows that the cryptocurrency only has a bullish bias while trading above the $0.0330 level.
The four-hour time frame shows that a bearish head-and-shoulders pattern has formed, following the recent reversal from the $0.0330 level.
According to the size of the bearish pattern, the ETH/BTC pair could fall towards the $0.0310 area.
Bearish MACD price divergence has also formed and is warning of a coming decline towards the $0.0310 level.
ETH/BTC technical summary
ETH/BTC analysis suggests that the pair has met strong medium-term resistance, and a bearish correction back towards the $0.0300 level may take place.