- Ethereum has been hit hard by the latest selloff, with the cryptocurrency’s price plunging to its critical $400 support before posting a slight rebound
- This price action has done little to offer insight into ETH’s mid-term trend, but it did strike a blow to the bull case that has been mounting over the past few weeks
- Analysts are now conflicted as to where it may trend in the near-term, which may depend largely on its reaction to $400
- One trader is noting that he believes this marks the start of a much deeper and farther-reaching downtrend
Ethereum has erased virtually all of the massive gains it has been able to post throughout the past few days and weeks.
The cryptocurrency is now trading just above its key near-term support at $400, with the selling pressure it witnessed this morning severely damaging its near-term outlook.
Analysts are now noting that this decline may mark the start of a macro correction, during which time the asset may plunge significantly further.
One trader is pointing to the support within the $390 region as a reason why further downside may be fleeting, although much of its price action in the coming days may depend largely on where Bitcoin trends.
Ethereum Shows Signs of Weakness as Analysts Watch for Support Between $390 and $400
At the time of writing, Ethereum is trading down over 6% at its current price of $413. This marks a notable decline from daily highs of $450, and an even more significant decline from its multi-day highs of $490 that were set earlier this week.
Analysts are offering mixed outlooks on where it trends next, but one trader explained that he believes it remains technically strong so long as it continued holding above its support within the $390 region.
“In times like these it’s most difficult to adhere to a HTF perspective. Just sharing my views from the monthly… ETH: Positive as long as support at $390s holds,” he said.
Trader: ETH Could Be Starting a Macro Correction
Another analyst offered a far grimmer outlook on Ethereum, noting that he believes it is starting a macro correction that could lead it to see some serious losses in the weeks and months ahead.
“I’m going to be moving into net short ETH positions throughout the coming days. From my side, the signals say that price is going for a macro correction,” he noted.
How Ethereum trends throughout the day should offer some information on how impactful this latest decline will be on the cryptocurrency’s long-term outlook.
Featured image from Unsplash. Pricing data from TradingView.