- Ethereum broke below $600 once again following what appeared to be a sustained bout of trading above this level
- The selling pressure seen here has proven to be quite intense, and may continue slowing the crypto’s ascent
- The crucial resistance level to watch closely sits at $620, as this level has sparked numerous rejections for the cryptocurrency
- If ETH is to gain any near-term momentum, $600 must be firmly reclaimed
- One trader believes that there’s going to be further blood before Ethereum can see any upside
- He is setting his sights on a move down towards $550 today, noting that the break below $600 marked a technical breakdown
Ethereum has been closely tracking Bitcoin’s price action as of late, which has exposed it to seeing some notable downside.
The selling pressure seen by the entire market as of late has all come about solely due to Bitcoin’s continued inability to make any meaningful progress towards breaking above its $19,800 resistance.
A rejection just below this level yesterday is what sent ETH spiraling below $600.
One trader is now setting his sights on a move to $553, noting that he will place bids here in hopes of it seeing a deeper retrace today.
Bitcoin’s Latest Rejection Sends Ethereum Spiraling Lower
At the time of writing, Ethereum is trading down just over 4% at its current price of $592. This marks a notable decline from its daily highs of $625 set around this time yesterday when bulls attempted to post a fresh breakout.
The resistance at $620 was too significant for the cryptocurrency, however, and Bitcoin’s rejection at $19,500 perpetuated this latest move lower.
Where it trends next will likely depend on Bitcoin’s continued reaction to the $19,000 region.
Trader: ETH Likely to Plunge Towards $550 Before Finding Support
Ethereum, much like Bitcoin, has been setting higher lows with each rejection that it faces. This is a positive trend that speaks to bulls’ present strength.
If sustained above its current price levels, this rejection could also mark a higher low. However, one analyst believes that it will soon break this trend and plunge all the way down to lows of $553 before finding support.
“ETH Will prob bid $553 if we get a strong sell off today.”
Image Courtesy of Chase_NL. Source: ETHUSD on TradingView.
How Bitcoin trends coming few hours and days should provide some serious insights into where Ethereum and the entire market will trend in the days and weeks ahead.
Featured image from Unsplash. Charts from TradingView.