Ethereum Shows Signs of Weakness as It Nears Last-Ditch Support
- Ethereum is showing some signs of weakness as it once again dips below $390
- This level has become slight support for the cryptocurrency, with a sustained bout of trading beneath it potentially degrading its technical strength
- Analysts are offering a mixed outlook on the cryptocurrency, but one thing that is widely agreed upon is that it is approaching a make-or-break support level
- If the cryptocurrency is able to bounce at this level, it may be positioned to see significant near-term strength
- A break below here, however, could cause it to post massive losses that invalidate its bullish market structure
Ethereum has been incurring faltering momentum in recent weeks, with buyers being unable to support the cryptocurrency above its short-term support at $390.
This has opened the gates for it to reel down to its next key support level, which sits at $380.
Analysts are noting that this is a crucial level that must be ardently defended by bulls, as a break below it could be enough to send its price reeling significantly lower in the near-term.
One analyst is pointing to a rapidly forming bull-favoring pattern as a sign that upside is imminent, noting that it may dip a bit lower before rocketing up towards fresh highs.
He notes that ETH is currently the strongest of all major altcoins.
Ethereum Approaches Crucial Support at $380
At the time of writing, Ethereum is trading down just over 1% at its current price of $390. This is around where it has been trading throughout the past day, with bulls attempting to defend this level.
One analyst believes that a visit to its bedrock support at $380 is imminent, with its reaction to this level being a tell-tale sign of its near-term outlook.
“ETH / USD: It is what it is… $380 is a key support to maintain,” he said while pointing to the chart seen below.
Image Courtesy of Cactus. Chart via TradingView.
This Bull-Favoring Pattern Could Send ETH Rallying Towards Fresh Highs
Another analyst recently offered a far more bullish outlook on the crypto, explaining that he is expecting it to rally to fresh yearly highs as it completes a bull-favoring Elliot Wave pattern.
“Potential abc complete on ETH 4h. Can see a nice backtest of triangle breakout and would not be surprised to see a new high from here while everyone is now bearish. Still hands down the strongest of the majors imo,” he said.
Image Courtesy of SmartContracter. Chart via TradingView.
If ETH can complete this pattern and continue holding above $380, it may be poised to see some serious near-term upside.
Featured image from Unsplash. Charts from TradingView.