Ethereum Taps Key Resistance as Analysts Watch for Rebound to Falter
- Ethereum has posted a strong rebound from its recent lows, with bulls pushing the cryptocurrency up to highs of $360 earlier today
- This upswing proved to be short-lived, and the cryptocurrency has since been rejected at this level
- Nonetheless, today’s price action has signaled that ETH’s sub-$320 lows may ultimately mark a long-term bottom that is followed by further upside
- While speaking about this, one analyst explained that although today’s rebound has been strong, it has led Ethereum into a massive resistance region
Ethereum and the aggregated crypto market have seen some slightly positive price action today, with ETH’s intense selloff yesterday coming to an end around $315, which is where buyers stepped up and catalyzed a sharp rebound.
This rebound proved to be somewhat short-lived, however, as it sent ETH to highs of $360 before it faced insurmountable resistance that sparked a rejection.
One analyst, while speaking about this rejection, explained that he is expecting the cryptocurrency’s downtrend to continue in the near-term due to the insurmountable nature of the selling pressure between $350 and $360.
Ethereum Shows Signs of Weakness Following Intense Rally to $360
At the time of writing, Ethereum is trading up just under 3% at its current price of $343, which marks a notable upswing from recent lows of $315 that were set yesterday.
The dip to these lows came about in the absence of any intense Bitcoin selloff, as the benchmark cryptocurrency had primarily been ranging between $9,900 and $10,200 throughout the day.
ETH was clearly oversold at this point, which was reflected in the sharp surge it saw up to highs of $360 earlier this morning.
It did face a rejection here, which subsequently led it down to lows of $335 before it kicked off what appears to be a consolidation phase.
Analyst: This Key Resistance is Likely to Remain Insurmountable in the Near-Term
While speaking about Ethereum’s recent price action, one analyst explained that a continued bout of trading below the resistance at $350 would likely cause it to see continued weakness.
“ETH: I personally have us at resistance here. Flip this level & I’ll be more inclined to look at short-term longs. This level served as consolidation for the major up move to $418 then served as support 3 times since. This is now ETH’s 2nd attempt at it serving as resistance.”
Image Courtesy of Chase_NL. Chart via TradingView.
The coming few days should provide insight into the long-term importance of this level, and as to whether or not it will continue suppressing its mid-term price action.
Featured image from Unsplash. Charts from TradingView.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Cole Petersen, @Khareem Sudlow