Analyst: Ethereum Poised to Dip to $270 as Selling Pressure Mounts
- Ethereum has been fully exposed to the weakness seen by Bitcoin and the aggregated crypto market today
- This has caused it to post some notable losses, with its price reeling down to lows of $325 earlier this morning before bears lost some of their momentum and the crypto rebounded back above $330
- Despite some slightly positive price action seen this morning, one analyst is still noting that the likelihood of a decline down towards the sub-$300 region is growing
- He is particularly targeting a maximum downside movement to $270, at which point he expects it to find some strong support that allows it to bounce
Ethereum and the aggregated crypto market have seen some weak price action throughout the past several days, with Bitcoin’s inability to hold above $10,000 creating a headwind for the entire market.
It is important to note that ETH has been able to show some slight signs of strength today, as its price tapped lows of $325 before incurring an influx of buying pressure that allowed it to surge higher.
It’s still too early to say whether or not this is emblematic of a bullish trend reversal, or if it is simply a dead cat bounce that will be followed by further downside.
One analyst is still expecting Ethereum to plunge towards the sub-$300 region, although he notes that a move to $270 should spark another uptrend.
Ethereum Rebounds from Daily Lows as Bulls Defend Uptrend
At the time of writing, Ethereum is trading down over 5% at its current price of $335. This is around the price at which it has been trading throughout the past couple of days.
Earlier today bears forced the cryptocurrency as low as $325, which is where it found some heavy support that allowed it to rebound to its current price region.
This rebound has shown some signs of faltering already, and all eyes are closely watching to see if Bitcoin can recapture $10,000 and post a daily close above this crucial level.
Analyst: ETH Likely to See $270 Before Uptrend Can Begin
While speaking about Ethereum’s present outlook, one analyst explained that he is watching for a movement to $270 before the next part of its uptrend begins.
“ETH – So far so good. Levels holding well. Potential further drop to $270 but I have that pegged as an epic buy / not expecting much lower. We are in buy the dip territory as per last update. Looking forward to the next pamp,” he explained.
Image Courtesy of CJ. Chart via TradingView.
Where Bitcoin trends next will likely have significant impacts on Ethereum and the entire market, which means that it is vital that BTC recaptures $10,000 for ETH to guard against further downside.
Featured image from Unsplash. Charts from TradingView.