A Drop Under $300 Is the Path of “Least Resistance” for Ethereum
- Ethereum could drop even lower than it has over the past few weeks as it faces strong resistance.
- Analysts say that the crypto asset is vulnerable to a drop under $300 in the coming weeks.
- The asset is running up against critical resistances around $360-375.
- The coin will need to surmount this region, then hold it if it is to confirm more upside.
Ethereum Could Soon Drop Under $300, Analysts Fear
Ethereum is primed to drop lower as the cryptocurrency faces strong resistances above its current price, analysts say. One trader shared the chart below on September 29th, noting that ETH is likely to move lower as opposed to higher from here.
His sentiment seems to suggest that the resistance Ethereum is currently facing above its price is far more notable than the supports below. So much so that the trader said that the coin could reach $275-300 in the near future.
“I’ve been trying to fight it but I think $275 to $300 $ETH is the path of least resistance. The weekly is just a struggle. I’m an aggressive buyer at the 200 week MA.”
Chart of ETH's price action over the past few months with analysis by crypto analyst Ledger Status (@Ledgerstatus on Twitter). Chart from TradingView.com
He’s not the only one that thinks that Ethereum will move lower.
Michael Van De Poppe, a crypto analyst and trader at the Amsterdam Stock Exchange, recently said that the asset’s inability to pass the crucial hurdle of $366-375 will be disastrous for bulls. As reported by Bitcoinist previously, he said:
“All right, this one is moving upwards and that’s good. However, the crucial hurdle is around $366-375 to break. If that breaks, $ETH is ready for $415. If not, I assume $280 as a likely possibility for further corrective movements in Q4.”
Chart of ETH's price action over the past few months with analysis by crypto analyst Michael Van De Poppe. Chart from TradingView.com
Fundamentals of ETH Strengthen
Despite this price action, the fundamentals of the Ethereum network are strong.
Commenting on the fundamentals of the entire crypto space with an Ethereum undertone, Spencer Noon, head of DTC Capital, said:
“The strong fundamental backdrop to #crypto — which is unlike any bull market previously — is that there are billions of cryptodollars coming on-chain to use #DeFi. Unless that shows signs of slowing, we are on track for a multi-trillion dollar aggregate marketcap for the space.”
Noon has explained that the cryptocurrency market has better fundamentals than ever before. Ethereum has much to gain from these fundamentals, especially as there is high yield-offering opportunities based on the network.
Featured Image from Shutterstock Price tags: ethereum, ethusd, ethbtc Charts from TradingView.com A Drop Under $300 Is the Path of "Least Resistance" for Ethereum
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Nick Chong, @Khareem Sudlow