- Ethereum has been hit hard by the recent market-wide downturn, with the cryptocurrency’s price crashing by nearly $30 in a matter of minutes earlier today
- This move struck a serious blow to its technical outlook, leading many investors and analysts to anticipate further downside in the near-term
- One trader is specifically setting his sights on a move down towards $280, explaining that this is a bastion of buying pressure for ETH
- Whether or not Ethereum can slow its descent and rebound higher in the coming few hours should offer insights into its near-term outlook
Ethereum has incurred a sharp rejection throughout the past few hours that has struck a serious blow to its technical outlook.
It is important to note that the cryptocurrency has been unable to find any strong buying pressure throughout the course of this recent downturn, signaling that bulls may be fundamentally weak.
At the time of writing, the token is in the process of rebounding slightly from lows of $340 tapped earlier today, but it remains unclear as to how long this level will hold as support.
One analyst explained that he believes Ethereum will continue drifting lower until its price reaches somewhere between $250 and $280. These two levels are pivotal for the crypto to hold, as a bounce here could help keep its macro market structure intact.
Ethereum Reels Lower Following Rejection Below $400
Ethereum’s price action has remained stagnant throughout the past few days and weeks, with buyers and sellers largely reaching an impasse as it traded between $370 and $390.
It is important to note that the rejection it posted at just over $390 last week may have been the precursor to this move.
Bitcoin’s $11,000 rejection and subsequent decline down to $10,500 has compounded this movement, contributing to ETH’s current sell-side pressure.
Analyst: ETH May Reel Towards $250-280 Before Rebounding
This ongoing decline may extend significantly further. One analyst explained that he is eying a drop down towards the mid-$200 region, as this is where Ethereum’s bedrock support exists.
“Ethereum: The $385-395 level says; no Bueno. Continued range-bound movements. If we get to $280 and/or $250 I’d be happily looking for longs,” he said while pointing to the below chart.
Image Courtesy of Crypto Michael. Chart via TradingView.
The stock market – which is currently seeing heightened volatility – may have some serious influence over Bitcoin, Ethereum, and the rest of the market in the near-term.
Featured image from Unsplash. Charts from TradingView.
