Ethereum “Crashes Heavily” Against BTC as Market Faces Strong Pullback
- Ethereum has been severely underperforming Bitcoin as of late, which has led the ETHBTC trading pair to see immense weakness
- It is currently plunging lower as Bitcoin’s $13,800 rejection sends shockwaves throughout the market
- Although it has reached its first key support zone, weakness seen by both BTC and ETH individually will likely drag it significantly lower in the near-term
- This weakness can only be reverted if bulls step up and propel both the cryptocurrencies together in tandem
- One analyst is expecting significantly further downside
Ethereum has been struggling to match the strong momentum seen by Bitcoin as of late, but it has been fully exposed to the weakness seen by Bitcoin throughout the past several hours.
Yesterday afternoon, BTC saw a push higher that sent it towards its 2019 highs of $13,800. This move was significant and led many investors to anticipate further upside, but bears rapidly catalyzed a rejection.
This rejection sent the benchmark cryptocurrency down to its support at $13,200, creating shockwaves that have put serious pressure on Ethereum as well.
One analyst is now warning that further weakness could be imminent for ETH – especially against the cryptocurrency’s Bitcoin trading pair.
Ethereum Struggles as Selling Pressure Forces It Below $400
Previously, Ethereum had been ardently trying to hold above its $400 support level as Bitcoin reclaimed its dominance over the market and saw an independent rally higher.
BTC’s rejection, however, forced ETH below this key level.
At the time of writing, Ethereum is trading down roughly 4% at its current price of $390. This marks a significant pullback from its intra-rally highs of $420 set just a handful of days ago.
The crypto is also seeing weakness against its BTC pair, currently down over 1% at its current price of 0.029.
Analyst: ETHBTC Likely to Plunge Significantly Lower
While sharing his thoughts on where Ethereum might trend in the near-term, one analyst explained that he expects it to continue underperforming Bitcoin.
He points to the 0.025 BTC region as its key support that it is likely to visit.
“Ethereum: Still crashing heavily, as expected. I’m looking to be buying this one in December/January and probably around the 0.025 area. But short term, a slight bounce can occur. The crucial breaker is the 0.0315 sats zone.”
Image Courtesy of Crypto Michaël. Source: ETHBTC on TradingView.
Unless something shifts this trend, like the release of Phase 0 of the ETH 2.0 upgrade, there’s a decent likelihood that Ethereum will continue seeing weakness in the short-term.
Featured image from Unsplash. Charts from TradingView.