Ethereum is Touching a Key Resistance Level, and It Could Spark a Drop to $280
- Ethereum is flashing signs of immense strength as it pushes up towards its high time frame resistance at $350
- This level has long been a target that analysts have been setting their sights on, and it is likely that a heavy amount of selling pressure exists here
- Although over a macro time frame ETH is firmly bullish, the visit to this level may spark a slight selloff that leads it down towards $280
- Analysts are noting that this could be a good entry point for fresh positions
Ethereum and the aggregated cryptocurrency market are showing some signs of strength as most digital assets push higher.
ETH, in particular, has seen some incredibly positive price action, as it has been able to consistently climb against Bitcoin – allowing it to outperform many of its peers.
There are a variety of non-technical factors behind this strength, but technical analysis suggests that a recent trendline breakout is one main factor helping to drive it higher.
That being said, it is currently approaching its crucial high time frame resistance that analysts have been closely watching.
If unable to surmount this level in the near-term, ETH may soon decline towards $280.
Ethereum Pushes Towards Key Level as It Maintains Strength
At the time of writing, Ethereum is trading up over 1% at its current price of $340. This marks a climb from daily lows of $330, but a rejection from highs of $348 that were set earlier today.
It now appears that the cryptocurrency is already struggling to surmount the region surrounding $350 – which may be a grave sign regarding the strength of this resistance.
In a recent tweet, one popular analyst explained that the crypto’s uptrend first started when it broke a descending trendline, which offered a target within the lower-$350 region.
“Still space to push on longer timeframes,” he said while referencing the below chart with an upside target of $354.
Image Courtesy of Teddy. Chart via TradingView.
Because this is such a crucial level, it may be quite some time before it is broken by buyers.
ETH Could Dip as Low as $280 if It Faces Firm Rejection
While speaking about potential pullback targets, one analyst explained that he is closely watching for a downside movement towards $280 – which would provide an ideal dip-buying opportunity.
“Ethereum: Levels to watch on the upside: $354-362 / $395-405. Levels to watch on the downside: $280-285. Really eager to buy that dip.”
Image Courtesy of Crypto Michaël. Chart via TradingView.
How Ethereum trends as it hovers below this crucial level should provide investors with significant insights into where it may go in the latter part of 2020.
Featured image from Unsplash. Charts from TradingView.