Price Analysis

ETHBTC at Critical Support, ETH Bulls Must Hold above 0.070 BTC

Published

8 months ago

November 18, 2021

Dalmas

ETHBTC is a chart depicting, in real-time, the clash of titans.

And right now, it’s a match, but Bitcoin bulls are showing signs of flipping ETH after periods of extended losses.

Even so, there is no defined path in the short term as prices are trending, moving horizontally with tapering participation levels.

ETHBTC Market Performance and Price Status

The ETHBTC, from a top-down approach, is skewed to favor ETH bulls.

However, there must be momentum injection and a lift-off above the critical resistance line for buyers to take charge.

There is no doubt that Ethereum and Bitcoin are heavyweights.

For instance, Ethereum is a leader in smart contracting with a solid reputation as the home of DeFi and NFTs.

Over half of the over $250 billion in assets managed by dApps across the industry are in Ethereum.

Meanwhile, the platform also moves billions in sales of NFTs.

On the other hand, Bitcoin is a product whose financial instruments are listed in regulated bourses globally.

Over time, it has emerged as a store of value and the most valuable digital asset held by governments—like El Salvador—and multi-billion-dollar public companies like Square and MicroStrategy.

From the daily chart of the ETHBTC, there are hints of weakness slowing down ETH bulls. The primary support is at 0.070 BTC, while immediate support lies at 0.075 BTC.

A conclusive break below the immediate support level and the middle BB would easily see BTC trounce ETH as the trend shifts to bearish.

Notably, this contraction is from a key Fibonacci retracement level of the September 2021 range—the 78.6 mark—and is significant.

ETHBTC Is Bullish Above 0.070 BTC

This is the preview of one trader on Twitter. When both assets are under pressure, sliding from their peaks, the ETHBTC uptrend looks distorted.

Wait, $ETHBTC is looking kinda good as long as 0.07 holds pic.twitter.com/mjq8OgjB9s

— Crypto Krillin ॐ (@LSDinmycoffee) November 18, 2021

However, the trader is confident that ETH bulls are in a commanding position as long as the primary support at around 0.070 BTC holds.

As mentioned earlier, this is a critical support line that also flashes with the middle BB. A break below this mark may see BTC bulls flow back, rewinding losses versus ETH in the days ahead.

Conversely, a rebound from spot levels may lift ETHBTC to 0.075 BTC. A break above this level would likely lift prices towards the main liquidation line at 0.012 BTC.

Bullish Breakout Pattern Valid

Meanwhile, another trader believes that ETH buyers are solid and may break even higher in the weeks ahead.

ETH Daily Technical Outlook:$ETH closed with a bullish hammer and ETHBTC also closed bullish inside of the new falling wedge. A breakout will apply more bullish pressure in Ethereum. All we need is one more decent bullish Daily closing from Ethereum to confirm the higher low 👀 pic.twitter.com/ed5qNvMAlp

— CRYPTOWZRD (@cryptoWZRD_) November 18, 2021

Notably, despite the cool-off, ETH has the upper hand and is trading within a bullish breakout pattern.

Specifically, the analyst says ETHBTC is within an ascending wedge, but another push higher would nullify the bearish tendencies of the past few days. Still, despite the optimism, risk-averse traders can take a wait-and see-approach before loading, depending on the breakout direction.