- Ethereum has seen a strong performance in the past 24 hours.
- The coin has reached its highest price in days as it moves to $360.
- While this is bullish price action, Ethereum printed a number of wicks above the current price.
- This important as above ETH’s current price is an important horizontal resistance.
- Ethereum failing to surmount this level and flip it into support exposes the coin to a drawdown, analysts say.
- Bitcoin may end up dictating ETH’s price action at the end of the day.
- Analysts should watch Bitcoin and Ethereum in the coming days to determine the direction the rest of the crypto market will move.
Ethereum Is Primed to Drop as It Fails to Pass a Key Resistance
Ethereum failing to move past the resistances in the $365-375 region could result in a strong correction according to top analysts.
Michael Van De Poppe, a crypto analyst and a trader at the Amsterdam Stock Exchange, says that should the cryptocurrency fail to move past this resistance, it could drop towards $300, then slightly lower. This region is important as it’s where a number of ETH corrections bottomed in the past two months.
“All right, this one is moving upwards and that’s good. However, the crucial hurdle is around $366-375 to break. If that breaks, $ETH is ready for $415. If not, I assume $280 as a likely possibility for further corrective movements in Q4.”
Chart of ETH's price action over the past few months with analysis by crypto analyst Michael Van De Poppe. Chart from TradingView.com
All Eyes on Bitcoin
While Ethereum may be in no man’s land in and of itself, Bitcoin’s price action will dictate that of altcoins moving forward.
Analysts are optimistic about BTC after the coin surged towards $11,000 on Sunday evening. The surge convinced many that the prevailing short-term trend is bullish as opposed to bearish.
As reported by Bitcoinist previously, one analyst shared the chart below. It shows that Bitcoin’s recent price action has been pivotal in that the cryptocurrency bounced off a historical support.
Chart of BTC's macro price action since the start of 2017 with analysis by crypto analyst MacroCRG (@MacroCRG on Twitter). Chart from TradingView.com
Further gains in the price of Bitcoin will drive Ethereum higher as the two markets are somewhat correlated with one another.
What may happen, though, is that the exact price performances of BTC and ETH diverge as fundamental trends drive the magnitude of moves in different directions. As seen over recent months, Ethereum has largely outperformed Bitcoin due to trends in decentralized finance.
Featured image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Ethereum Is At a Pivotal Resistance, and a Rejection Could Send ETH to $300