- Although the altcoin market has not been tracking Bitcoin’s upside as of late, it is still fully exposed to its downside
- The cryptocurrency faced another rejection at $13,800 overnight that caused it to reel into the lower-$13,000 region
- This created headwinds that put a firm end to the breakout rally that Ethereum started forming yesterday
- ETH has now erased all of its recent gains and is now at risk of seeing significantly further downside
- One analyst is targeting a move that sends it down towards $315 in the near-term
Ethereum has been struck hard by Bitcoin’s recent downturn, as its attempt at forming a breakout rally was ended overnight after it saw a sharp selloff.
This selloff also came about after some massive sell orders placed on exchanges like Coinbase, with a total of over 8,000 tokens being moved by whales onto various trading platforms.
Where it trends in the near-term may depend largely on how strong its $380 support is.
One analyst believes that a break below this level could open the gates for further losses that potentially reach as far as $315.
Ethereum Fails to Post Breakout Rally Due to Bitcoin Downturn
At the time of writing, Ethereum is trading down just under 4% at its current price of $382. This is where it has been trading throughout the past few days and weeks, with buyers and sellers unable to control its trend.
Yesterday, it was able to rally towards $400 in a sharp movement that came about rather unexpectedly.
This movement was fleeting and followed by some serious downside, with bears stepping up in full force after it hit highs of $404.
Analyst: ETH Could Slide Towards $315 if It Loses Key Support
If Ethereum breaks below the $368 to $380 support region, it could see some serious near-term losses.
One analyst spoke about this in a recent tweet, noting that it could decline as low as $315 if this key region is broken below.
“Ethereum: Still the same view here. Holding support, but barely. Losing $368-380 and I think we’ll see $315 area for support.”
Image Courtesy of Crypto Michaël. Source: ETHUSD on TradingView.
The coming few days should provide some serious insight into where Bitcoin and altcoins will trend in the days and weeks ahead.
If ETH sees any immense decline in the near-term, it could create shockwaves that spark further capitulation amongst smaller altcoins.
Featured image from Unsplash. Charts from TradingView.