- Ethereum has been closely tracking Bitcoin and the aggregated crypto market throughout the past few days
- This allowed it to garner some strong momentum earlier this week, but has led it to see some notable downside throughout the past 24-hours
- BTC and ETH both faced strong rejections above their key resistance regions, which has struck a slight blow to their technical outlooks
- Analysts are now noting that although this rejection seems grim, it may be followed by further upside
- One trader is specifically looking towards a movement up towards $420 in the near-term, noting that there is just one key level Ethereum must first surmount
Ethereum and the aggregated cryptocurrency market have faced some turbulence throughout the past 12 hours.
Yesterday, bulls were in firm control of the market, pushing Bitcoin and Ethereum past the resistance levels that had been suppressing their price action for an extended period of time.
For ETH, this resistance sat around $380, which is around the price at which it posted a strong rejection at earlier this past week.
So long as bulls continue guarding against the cryptocurrency seeing any further downside, one analyst is noting that its technical outlook still remains incredibly bright.
He even notes that a move to $420 could be imminent.
Ethereum Faces Rejection at $380 as Sellers Try to Take Control of Crypto Market
At the time of writing, Ethereum is trading down just under 7% at its current price of $360. This marks a notable decline from recent highs of $390 that were set overnight, with buyers being unable to sustain its momentum.
This ongoing decline has come about in tandem with that seen by Bitcoin, which plunged from highs of $10,600 to lows of $10,200.
ETH does appear to be in a somewhat precarious near-term position, and where it trends leading up to its weekly candle close in the coming few hours should provide significant insight into its near-term trend.
Analyst: ETH Remains Poised to Push Higher Despite Ongoing Decline
While speaking about its technical position, one analyst explained that he believes Ethereum could be well-positioned to see some further upside in the near-term.
He notes that this recent rejection was to be expected, and that a continued phase of BTC trading above $10,200 could boost ETH higher.
“Perfect ETH local rejection at heatmap/volume spike. Let BTC keep up and we see 420$,” he said while pointing to the below chart.
Image Courtesy of CryptoBirb. Chart via TradingView.
The coming few hours are vital for both Bitcoin and Ethereum, as a continued bout of weakness could lead them to close their weekly candles on a low note, setting a bearish tone for the week ahead.
Featured image from Unsplash. Charts from TradingView.