Technical Analysis for ETHBTC for 7th January 2022
ETHBTC Bull Trap, Prices May Plunge to 0.070 BTC
Past Performance of ETHBTC
Bitcoin sellers are now at the wheel as per the developments in the ETHBTC price chart. Gains in early December forcing ETH above 0.085 BTC turned out to be a bear trap. At spot rates, ETH is down 13 percent versus resurgent BTC bulls.
ETHBTC Technical Analysis
The path of least resistance has been defined: Bitcoin bears are in a commanding position, unwinding losses versus BTC posted in the second half of the year. The contraction below 0.085 BTC ushers in demand, pushing ETH lower.
From the daily chart, a close below 0.075 BTC would be a bear breakout pattern, confirming the weakness of early January 2022 as the tide turns against ETH. The rationale behind this is that the January 6 bear bar is engulfing and has high trading volumes. Forming in a bear breakout pattern, this swings price action against ETH traders.
What to Expect of ETHBTC
At spot rates, BTC has the upper hand. Bitcoin is now outperforming ETH as capital flows to the "store-of-value" asset. Technically, an unexpected recovery above 0.083 BTC may support prices. Meanwhile, a close below 0.075 BTC would likely trigger another sell-off. This time, ETHBTC may sink to 0.070 BTC—the 61.8 percent Fibonacci retracement line of the Q4 2021 trade range.
Resistance level to watch: 0.083 BTC
Support level to watch: 0.075 BTC
Disclaimer: Opinions expressed are not investment advice. Do your research.
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