Ether Resting on Key Support

Ether prices are resting on a key support level, a break of which could lead to a new downtrend. Dash, on the other hand, is already in a downtrend after a string of nine bearish daily candles.

Ether Resting on Key Support

Ether is resting near key support around 0.06626 BTC. A few days ago we again tested this level with prices bottoming out at 0.06643 BTC before climbing higher. But the bounce was short-lived and we are currently quoted at 0.06763 BTC, very close to the lows.

ethbtcdaily-oct5-copy

The support near 0.06626 BTC has been tested multiple times and remains a key level going forward. A break of this important support could start a new downtrend in ETH/BTC. On the other end, we have the swing high at 0.07750 BTC. A breakout above here could lead to a new rally. As usual with these levels, we’re looking for a sustained break, not just a brief and shallow spike lower/higher.

With prices just skirting on support, things are looking grim for the bulls right now. But all hope is not lost. The Byzantium protocol upgrade has been hard-coded and is now set at block 4,370,000. Current projections put this on October 17th. If everything goes well, the upgrade should improve the speed and security of the network, as well as have a positive impact on the price of Ether. On the weekly charts, ETH/BTC is range-bound as well. The monthlies are still showing a bullish bias.

Dash in Downtrend

After nine consecutive bearish daily candles, DSH/BTC is now in a downtrend. We’re trading just above the 0.07 round figure right now, after an earlier foray below it got stopped by the bulls.

dshbtcdaily-oct5-copy

We have strong support area below current prices consisting of several levels at 0.07 BTC, 0.068 BTC and finally 0.06690 BTC. A clearing of this area should lead to exacerbated losses for Dash. Further down we find more support at the 0.06 and 0.05 BTC round figures, followed by the 0.04420 swing low.

On the other end, the key level is 0.091 BTC. A breakout above here would end the fledgling downtrend. Higher up we need to see a break of the five-month high at 0.09720 BTC to re-start the rally. While down on the daily, on both the weekly and the monthly charts DSH/BTC is still in rally mode.

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Petar Kotevski

Petar is a forex trader and writer with 9 years of experience in financial markets. He has been following bitcoin since 2010. A year ago, as the BTC market matured, he started getting more involved by writing articles on bitcoin and other alternative currencies.

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