- Ethereum has seen a couple of sharp selloffs throughout the past day, with bears aiming at keeping it below $600
- This comes following a strong move higher earlier this week, which allowed the crypto to rally as high as $623
- The selling pressure here was intense and caused it to see a sharp decline, from which point forward it has been consolidating
- Where it trends in the mid-term will largely depend on its continued reaction to the resistance that sits around $600
- One trader is noting that the recent decline has caused it to break below a key moving trendline for the first time since it was trading in the $400 region several weeks ago
Ethereum and the entire crypto market are currently within a consolidation phase as Bitcoin makes a bid at setting fresh all-time highs.
The benchmark crypto rallied as high as $19,500 overnight before facing an influx of selling pressure that slowed its ascent and caused its price to reel lower.
This also had impacts on Ethereum, which has been closely tracking BTC’s overall trend. It faces some strong resistance around $600.
If bulls are unable to surmount this level in the near-term, it could see a sharp selloff that comes as it shows signs of breaking below a crucial support level.
Bitcoin Rallies Towards All-Time Highs as Ethereum Flashes Signs of Weakness
Ethereum is flashing some signs of weakness as its price hovers below $600. The selling pressure here has proven to be quite significant over the past few days.
The crypto briefly broke above this level earlier this week when the hype surrounding ETH 2.0 mounted, but this quickly faded when bears pushed the crypto back below $600.
It is now consolidating as buyers try to defend against a break below its $580 support, with Bitcoin flashing immense signs of strength.
Trader Claims ETH Could Soon Break a Key Level
One trader explained that Ethereum is in the process of breaking below a crucial level that has long been supporting its uptrend.
“A small blip or the end of the run up? ETH losing the trend for the first time since $400.”
Image Courtesy of Cold Blooded Shiller. Source: ETHUSD on TradingView.
Whether or not this trendline can be held above will set the tone for where it trends in the days and weeks ahead. Any sustained break below here could prove to be dire for the cryptocurrency’s outlook.
Featured image from Unsplash. Charts from TradingView.
