Ethereum Price Analysis: ETH/BTC ascending channel support breakdown eyes 0.02 BTC

Ethereum price is losing significant ground against Bitcoin on Tuesday. Following the price crash in March, where the second-largest embraced support at 0.0200 BTC, an upward roll catapulted the price to new April highs of 0.0260 BTC. The recovery followed the confines of an ascending channel whose support remained instrumental to the price action.

Unfortunately for Ethereum, May has started on a drab note with declines extending towards the vital 0.0200 BTC support. The channel support has been shattered and the digital asset is exchanging hands at 0.02326 BTC. Marginally below the current market value, the 50-day SMA is in line to offer support at 0.0230 BTC.

According to the MACD, the price action is likely to remain bearish longer than expected. The MACD is almost crossing below the mean line while the widening bearish divergence hints that this cryptoasset would stay in the sellers’ hands a while longer. Apart from the 50-day SMA, other key support areas include the ascending trendline, the 200-day SMA, and the major support at 0.0200 BTC.

ETH/BTC daily chart

ETH/USD recovery above $200 stalls under $210

Ethereum price managed to bounce off newly established support at $195. The price shot up above $200 and extended the action towards $210 level. However, an intraday high at $208.66 on Tuesday has kept the bulls away from the short term target ($210). ETH/USD is trading at $207 amid a growing bullish momentum. The RSI hints that the bulls are slightly in control but the influence of the sellers is not entirely ousted. If the RSI takes on a horizontal trend, then investors should expect a certain period of consolidation before another breakout towards $220.

ETH/USD daily chart