- Ethereum has dropped after reaching highs at $390 just the other day.
- The coin now trades at $370 as of this article’s writing, slightly below the aforementioned highs.
- The coin remains below crucial support levels that must be reclaimed if ETH is to continue higher.
- One trader thinks that Ethereum dropping from here could make it difficult for bulls to “survive.”
- He thinks this is the case because ETH is on the verge of falling below an uptrend that formed earlier this month at the local lows.
Ethereum Needs to Rally Soon or Risk a Strong Drawdown
Ethereum needs to reclaim the Point of Control at $392 or risk a strong correction, analysts say.
Crypto trader Sean Nance shared the chart below on September 19th. It shows that Ethereum is currently reachin the apex of a pivotal short-term triangle, formed between an uptrend from the $310 lows and the Point of Control that has marked the baseline for much of the price action over the past two months:
“I think the local uptrend breaks soon. Bulls need to overtake the point of control to survive.”
Chart of ETH's price action over the past few weeks with analysis by crypto trader Sean Nance. Chart from TradingView.com
Some analysts have been more assertive, with one stating that there’s good likelihood Ethereum corrects here. Referencing the chart below, which shows that ETH is currently rubbing up against a pivotal resistance level that will likely lead to more downside, one commentator said:
“ETH, $391.22 & Daily MA50 are key levels. If you are Bear here is a good level to short, if you’re a Bull you want to see PA close above outlined resistance.”
Image Courtesy of Wolf. Chart via TradingView.
Eyes on the Legacy Market Open
All eyes should be on the legacy markets open in a few hours to determine which direction the crypto market should head next.
As mentioned many times over recent months, the price action of Bitcoin and other top cryptocurrencies has largely been dictated by the price action of traditional markets.
Stocks opening red, or the U.S. dollar dropping relative to foreign currencies, would likely push Ethereum, Bitcoin, and the rest of this nascent market to the upside.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Ethereum Bulls Need to Act Soon "to Survive": Here's Why