Ethereum is “Fighting for Its Life” as Bulls Struggle to Defend Critical Support Level
- Ethereum is currently in the process of rebounding from its daily lows that were set just a handful of hours ago
- The cryptocurrency has been facing heightened selling pressure as of late, struggling to build momentum as it remains below $370
- One analyst is now stating that the cryptocurrency is “fighting for its life” as it trades right around a crucial support level
- Bulls and bears have largely been at an impasse when it comes to ETH, which is surprising considering the strength Bitcoin has seen in recent weeks
- It is important to note that, so far, Ethereum has avoided breaking below its critical “line in the sand” support
Ethereum has been struggling to keep up with Bitcoin in recent days, with its price being dragged lower by the headwinds created by the ongoing descent of the DeFi market sector.
This weakness led it as low as the $350 overnight, which is the point at which bulls finally stepped up and began guarding against it seeing posting losses.
Analysts now are stating that the cryptocurrency could be well-positioned to see upside, but only if it can continue defending a last-ditch support level.
A break below this level, however, would be dire and potentially cause the crypto to see a massive move lower.
Ethereum Rebounds from Daily Lows as Analysts Eye Further Upside
At the time of writing, Ethereum is trading up just over 1% at its currency price of $368. This marks a notable upswing from daily lows of $356, but a slight decline from highs within the lower-$370 region.
ETH has been seeing some turbulence as of late, which has primarily come about due to moves seen within the DeFi sector.
At the present moment, DeFi-related tokens are struggling, which is creating headwinds for Ethereum.
There’s a possibility that they will continue hampering its upside potential in the near-term.
Analyst: ETH Must Defend This Key Support, or Face Risk of Major Losses
As such, how it trends in the coming days could be vital for its macro strength.
“ETH fighting for its life while BTC grinds up due to ETH/BTC looking like crap. 356$ is the line in the sand – bull above, close below and we FUD Vitalik and fees again. Pretty bad spot to be overexposed to alts,” he said.
Image Courtesy of Cryptorangutang. Chart via TradingView.
How DeFi tokens trend in the near-term may be one of the deciding factors that influence Ethereum’s outlook.
Featured image from Unsplash. Charts from TradingView.