Ethereum Price Analysis: ETH/BTC pair bounces off channel support as Bitcoin weakens

Ethereum seems to be gaining traction against the largest cryptocurrency in the market, Bitcoin. The trading pair, ETH/USD is currently exchanging hands at 0.02282 BTC. A bullish momentum is building following a bounce off the key ascending channel. The short term target is 0.0230 BTC; a resistance level when broken, could pave the way for more price action towards April’s resistance at 0.0260 BTC.

At the time of writing, the prevailing bullish momentum is emphasized by the upward trending RSI. This indicator has dipped to test the average (50) but it's holding the position slightly below 60. As it points upwards, buyers are joining the market to pull towards the aforementioned target at 0.0230 BTC. The same trend is supported by the MACD; an indicator that has managed to stay above the mean line since the dip to -0.00049 on May 8.

The 4-hour chart shows the ETH/BTC trading above the moving averages. In fact, a wide gap exists between the 100 SMA at 0.0219 BTC and the 50 SMA at 0.0224 BTC. As the gap widens, buyers are gaining momentum. In other words, ETH/USD pair could soon climb above the seller congestion zone at 0.0230 without much struggle.

Read also: Tezos Price Analysis: XTZ/USD stalls ahead of symmetrical triangle breakout eyeing $3.00

ETH/BTC 4-hour chart

ETH/USD trading pair

The ETH/USD trading pair remains pivotal at $200. It has become exceedingly difficult to break above the resistance at the 60.8% Fibonacci level taken between the last swing high of $291.33 and the swing low of $91.24. On the downside, support under $200 is seen at the confluence formed by the 50% Fibo and the 50-day SMA ($191.28). The ongoing consolidation is likely to continue as observed by the sideways trending RSI and MACD technical indicators.

ETH/USD daily chart