Bullish Argument for Ethereum Rapidly Losing Steam as $570 Is Lost
- Ethereum is primed to move lower in the days ahead as the cryptocurrency slides below $570 for the first time in many days.
- ETH is expected to see weakness in the near term as it slides below key technical levels with Bitcoin.
- One crypto-asset analyst recently shared the chart below, noting that Ethereum is moving below range lows in the $570 region.
- He thinks that as long as ETH holds below $570, the bear case in the near term will remain intact.
Ethereum Falls Below Key $570 Level
Ethereum is primed to move lower in the days ahead as the cryptocurrency slides below $570 for the first time in many days.
The leading crypto-asset is moving lower after Bitcoin began to dip on Tuesday afternoon. BTC finally fell below $18,750, plunging rapidly toward $18,250. As of the time of this article’s writing, BTC currently trades $18,300. While this is still above the $18,000 support level, it is below key technical levels that supported Bitcoin on the way up.
Ethereum is expected to see weakness in the near term as it also moves below key technical levels. One crypto-asset analyst recently shared the chart below, noting that Ethereum is moving below range lows in the $570 region.
The analyst thinks that the short-term bear case is intact as long as the cryptocurrency remains below $570:
“$ETH Looks to me like a loss of our range low. Ethereum would need to get above 570 soon for the bullish argument to remain intact. I’ll be looking to buy this dip around the levels I’ve marked.”
The trader added that he will look to long the cryptocurrency at the levels he marked. Per the chart, there is some support coming up in the $550 region, though there won’t be much until $520 if that region breaks.
Analysts remain overall confident about Ethereum in the long run due to the fact that Ethereum 2.0 recently launched.
Chart of ETH's price action over the past few weeks with an analysis by crypto trader TraderKoz (@TraderKoz on Twitter). Source: ETHUSD from TradingView.com
All Eyes on BTC
Ethereum is still in a relatively positive state on a macro time frame. Unfortunately for ETH bulls, analysts think that Bitcoin, too, may correct to the downside. This may result in a drawdown that is larger than that of BTC.
Commenting on the outlook that Bitcoin has from here, a leading crypto-asset analyst recently said:
“Starting to look like the flip into the corrective mode. You can say hodl all you like, but it’s irrelevant at the frothy end of the market, where all the leveraged up, FOMO’d, moonboys piled in. That’s parabolas for you.”
Ethereum is likely to move lower should Bitcoin do so, unless there are macro factors that affect BTC but not ETH.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt, ETHUSD, ETHBTC, ETHUSDT Charts from TradingView.com Macro Analysis Predicts Bitcoin Has Begun Rally Toward $100k
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Nick Chong, @Khareem Sudlow
