Ethereum Reaches a “Vital” Point as Bulls Fail to Flip Resistance to Support
- Ethereum and the entire crypto market has faced some weakness throughout the past couple of days
- Although both BTC and ETH are trading well above their recent lows, it is important to note that bears are in the process of reversing yesterday evening’s gains
- This downtrend could prove to be bearish for ETH, as the crypto has been unable to flip a key resistance level into support
- This comes as it ventures into what one analyst is describing as a “vital” point that could provide some serious insights into where the entire market will trend next
- Where Ethereum trends in the mid-term will undoubtedly depend on Bitcoin and its reaction to the support in the lower-$30,000 region
Ethereum has been sliding lower all morning in tandem with Bitcoin. The benchmark crypto led the market to see a rebound yesterday evening, but the selling pressure proved to be too much for bulls to handle.
BTC rejected in the mid-$36,000 region, while Ethereum rejected at $1,160. This has caused most altcoins to also plunge lower in tandem.
Where ETH trends in the near-term should depend largely on BTC and the rest of the crypto market, but its inability to flip one key resistance level into support could foretell further downside.
Ethereum Slides Lower Alongside Bitcoin
At the time of writing, Ethereum is trading down just over 6% at its current price of $1,020. This marks a notable decline from its recent highs of $1,160 that were set overnight.
The cryptocurrency’s inability to gain any momentum comes as Bitcoin faces a similar dilemma.
Until miners slow the selling pressure they are placing on the benchmark crypto, there’s a strong possibility that it will continue facing immense selling pressure that slows its ascent and creates tailwinds for the rest of the market.
Analyst: ETH Fails to Surmount “Vital” Level During Recovery
During Ethereum’s overnight recovery, it reached a “vital” level when it tapped $1,160, which one analyst had hoped would be flipped to support.
The rejection here was grim and has since led it to see serious downside.
“ETH / USD: Macro structure is looking good and nice recovery so far from this key support region. Now its time to see if this level of previously support will now be flipped into resistance. Pretty vital here that both pairings move higher on LTF.”
Image Courtesy of Cactus. Source: BTCUSD on TradingView.
Where Ethereum trends will undoubtedly depend largely on Bitcoin, any intense BTC selloff could cause ETH to shatter below $1,000 once again and see a deeper drawback.
Featured image from Unsplash. Charts from TradingView.
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