Ethereum is Nearing Crucial Resistance; Rejection Here Could Spark Move to $300
- Ethereum’s price is currently struggling to surmount some heavy resistance, which has caused it to lag behind Bitcoin today
- This resistance, which exists at $380, has hampered its price action on multiple occasions throughout the past few weeks
- Despite this, because BTC is now nearing $11,000, a break above this crucial level will likely catalyze some intense buying pressure that also creates a tailwind for ETH
- One analyst noted that this region of resistance between $385 and $410 might have some serious impacts on Ethereum’s mid-term trend
- He notes that while a break above this level would be significant, a rejection here could be enough to send it spiraling below $300
Ethereum and the entire cryptocurrency market are flashing some mixed signs. While Bitcoin is rallying towards $11,000 and showing immense signs of strength, ETH and other major altcoins are remaining somewhat stagnant.
Where the market trends in the near-term should have some serious implications for the smaller altcoins that have been stealing investors’ attention over the past few months.
If ETH faces a rejection at the resistance region between $385 and $400, it could stop the DeFi bull run in its tracks, and even create a headwind for Bitcoin.
That being said, BTC’s current strength may prevail, and help lift Ethereum past this crucial region.
Ethereum Struggles to Keep Up with Bitcoin
At the time of writing, Ethereum is trading down just over 1% at its current price of $373. This is around where it has been trading throughout the past day, following a couple brief dips to $350.
At the time, these dips seemed to put its mid-term strength in jeopardy, but bulls stepped up and ardently defended against it seeing any further downside.
Where it trends next now depends primarily on its reaction to the resistance region that starts around $380, as well as Bitcoin’s reaction to $11,000.
Analyst: ETH Could Plunge to Sub-$300 if It is Rejected at Key Resistance
While speaking about the resistance that exists just ahead of where Ethereum is currently trading, one analyst explained that it will likely be the sole factor that determines its near-term outlook.
He specifically notes that a rejection here could spark a sharp move to the sub-$300 region.
“ETH is likely headed to the top of this channel here at $400 and from there comes the moment of truth. I favor the RED path, but a HTF close above the RED region would force me to flip bullish. This is going to get interesting,” he said.
Image Courtesy of Credible Crypto. Chart via TradingView.
The coming few days should reveal insight into just how significant this price region will be for where Ethereum trends in the coming few weeks.
Featured image from Unsplash. Charts and pricing data from TradingView.