Analyst: Ethereum Likely to Plunge Towards $320 After Tapping This Key Level
- Ethereum has been closely tracking Bitcoin’s price action throughout the past few weeks, although it has been able to outperform the crypto in recent days
- The cryptocurrency is currently trading up significantly from recent lows of $379 that were set during its recent selloff
- While BTC remains below its pre-selloff highs, Ethereum has been able to surge past them
- Despite this strength, analysts are still noting that the crypto may plunge into the lower-to-mid $300 region in the near-term
- The movement to this liquidity region may come about after its price rallies up towards $425.
Ethereum’s recent decline to the sub-$380 region kicked off a strong uptrend, which has since allowed it to firmly surmount the resistance it was previously facing around $400.
The cryptocurrency is now attempting to secure a strong foothold within this price region, as a flip of $400 into a support level could be enough to send BTC surging higher.
Analysts are now setting their sights on a movement up towards $425 in the near-term, which is a major resistance level that may spark a far-reaching selloff.
While one trader is targeting a decline to ETH’s liquidity region at $360, another trader recently put forth a more aggressive downside target of $320.
Ethereum Shows Signs of Short-Term Strength; Here’s How Far It May Rally
At the time of writing, Ethereum is trading up just under 2% at its current price of $402. This marks a notable surge from multi-day lows of $379 that were set just a few days ago.
Analysts believe that a flip of $400 to support could help lead Ethereum even higher, with one trader setting his sights on a rally up towards $425 in the near-term. He thinks that the visit to this level will be followed by a sharp decline.
“425 -> 360. Too much consolidation up here at resistance, thinking it breaks through soon… If we flip 390.5 back to resistance, may hop back in my hedge,” he explained.
Image Courtesy of Chase_NL. Chart via TradingView.
Why One Trader is Expecting ETH to Decline Towards $320
Another analyst is offering a more aggressive downside target for the cryptocurrency.
He explained in a recent tweet that the resistance at $405 is significant and that he expects a rejection at this level to lead Ethereum as low as $320.
“One way traffic for ETH today. Looking to short $405 down to $320.”
Image Courtesy of Cold Blooded Shiller. Chart via TradingView.
Because Ethereum is generally correlated with Bitcoin, where the benchmark crypto trends in the near-term may have some influence over ETH.
Featured image from Unsplash. Charts from TradingView.