{"id":543032,"date":"2023-01-24T18:23:10","date_gmt":"2023-01-24T15:23:10","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ethereum-vs-bitcoin-eth-price-risks-20-drop-if-key-support-level-breaks\/"},"modified":"2023-01-24T18:23:10","modified_gmt":"2023-01-24T15:23:10","slug":"ethereum-vs-bitcoin-eth-price-risks-20-drop-if-key-support-level-breaks","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ethereum-vs-bitcoin-eth-price-risks-20-drop-if-key-support-level-breaks\/","title":{"rendered":"# Ethereum vs. Bitcoin: ETH price risks 20% drop if key support level breaks"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a26246f88f73\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a26246f88f73\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-vs-bitcoin-eth-price-risks-20-drop-if-key-support-level-breaks\/#%E2%80%9D_Ethereum_vs_Bitcoin_ETH_price_risks_20_drop_if_key_support_level_breaks_%E2%80%9C\" >&#8221; Ethereum vs. Bitcoin: ETH price risks 20% drop if key support level breaks &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-vs-bitcoin-eth-price-risks-20-drop-if-key-support-level-breaks\/#ETH_slides_vs_BTC_in_second_half_of_January\" >ETH slides vs. BTC in second half of January<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-vs-bitcoin-eth-price-risks-20-drop-if-key-support-level-breaks\/#Ethereum_price_capped_by_key_descending_trendline\" >Ethereum price capped by key descending trendline<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Ethereum_vs_Bitcoin_ETH_price_risks_20_drop_if_key_support_level_breaks_%E2%80%9C\"><\/span>&#8221; Ethereum vs. Bitcoin: ETH price risks 20% drop if key support level breaks &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-5a4050f8>Ether&#8217;s (ETH) rally versus Bitcoin (BTC) is not only showing signs of exhaustion, but is also in danger of breaking below a key technical support level.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"ETH_slides_vs_BTC_in_second_half_of_January\"><\/span>ETH slides vs. BTC in second half of January<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The ETH\/BTC pair declined nearly 9.25% on Jan. 24 from its local top of 0.0779 BTC established on Jan. 11. Since the start of the year, Bitcoin is slightly outpacing Ether in USD terms, rising 38% versus 35%, respectively.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/ba725adf-2793-4456-bc5c-96f62d4b1e17.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>ETH\/BTC daily candle price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Interestingly, Ether&#8217;s pullback versus Bitcoin has landed its price at the bottom of its EMA ribbon range, as shown below.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/75ed8f05-2a4a-47dd-ae1b-5b0e521de5d2.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>ETH\/BTC weekly candle price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>The EMA ribbon indicator shows numerous exponential moving averages of increasing timeframe on the same price chart. Dropping below the ribbon range increases an asset&#8217;s likelihood of seeing an extended down-move. <\/p>\n<p>So in other words, breaking lower would increase its possibility of declining by more than 20% from its current price levels.<\/p>\n<p>Conversely, rising above the ribbon range raises the asset&#8217;s chances of a broader rally. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ethereum_price_capped_by_key_descending_trendline\"><\/span>Ethereum price capped by key descending trendline<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This week, ETH\/BTC dropped to the 55-week exponential moving average (the red wave) \u2014 a bottom wave \u2014 of its EMA Ribbon indicator, as shown below. Buyers took control near the 55-week EMA, prompting Ether to recover a mere 0.35% versus Bitcoin to 0.0708 BTC on Jan. 24.<\/p>\n<p><strong><em>Related:\u00a0This $25K BTC price target would spell misery for Bitcoin shorters<\/em><\/strong><\/p>\n<p>But now, the likelihood of retesting the EMA ribbon bottom is high due to a multi-month descending trendline resistance (black trendline in the chart below), where sellers have been more active as of late.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/dc0bd552-22c7-4bb7-bb21-66047b6995bd.png\"><figcaption style=\"text-align: center;\"><em>ETH\/BTC weekly price chart focusing on descending trendline resistance. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Therefore, one cannot rule out of the possibility of ETH\/BTC breaking below the EMA Ribbon range, similar to how the pair did in May 2022 in the wake of the Terra collapse. <\/p>\n<p>Back then, Ether fell by over 25% versus Bitcoin to 0.0490, a level coinciding with its 200-week EMA (the blue wave).\u00a0<\/p>\n<p>Therefore, if a similar breakdown occurs in the coming weeks, the ETH\/BTC pair may test the 200-week EMA near 0.0550 BTC as its primary downside target, or roughly a 20% price drop from current levels.\u00a0<\/p>\n<p class=\"post-content__disclaimer\">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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