Ethereum has Yet to Reach a Critical Support Zone; Will It Tap $300?
- Ethereum’s price action has been nearly identical to that of Bitcoin throughout the past couple of days
- This caused the crypto to dip as low as $318 yesterday, at which point buyers stepped up and catalyzed from strong momentum
- This pushed the cryptocurrency up to highs of $340, which is where it found some resistance
- ETH is now caught within a bout of sideways trading, and its price is offering few signs of clarity to investors
- One trader is noting that Ethereum is yet to visit one key liquidity region. This could indicate that it will soon see further losses
Ethereum and the entire crypto market have been put in a precarious situation throughout the past few days and weeks, with buyers being unable to maintain control following Bitcoin’s rejection at $11,200.
The intense selling pressure seen here slowed its ascent and caused it to reel down towards $10,200, taking Ethereum and other altcoins down with it.
Much like BTC, ETH was able to post a notable rebound from its recent lows and is now trading around the level at which it has been at throughout the past few days.
One analyst is noting that it has yet to tap a critical support region. This could indicate that further downside is imminent before a macro bottom is formed.
Ethereum Consolidates Following Overnight Rebound
At the time of writing, Ethereum is trading up nearly 5% at its current price of $335. This is around the price at which it was trading at prior to the recent selloff that led it to lows of $318.
The cryptocurrency has primarily been caught within a bout of sideways trading for the past few days, with bulls trying to figure out what comes next following the intense decline from its $390 highs.
Where it trends next will likely depend on Bitcoin, which is also caught within a consolidation phase.
Analyst: ETH has Yet to Reach Critical Support
One analyst observed that Ethereum’s bedrock support exists within the lower-$300 region, and has yet to be tapped by the cryptocurrency.
As such, a visit to this level may be vital for the crypto to form a sustainable bottom that kicks off an uptrend.
“ETH / USD: We didn’t even get a chance to see this major buy zone before buyers once again step in a aggressively and defend price action, anything sub $320 and buys are confident. Would love to see a retest of $360 over the weekend,” he said.
Image Courtesy of Cactus. Chart via TradingView.
The coming few days should provide some insights into whether or not this level will be visited in the near-term.
Featured image from Unsplash. Chart from TradingView.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Cole Petersen, @Khareem Sudlow
