Ethereum Still Likely to Dive to $360 Support as Funding Stays Neutral
- Ethereum and Bitcoin have both posted notable rebounds after facing some intense weakness throughout the early morning hours
- ETH was able to rally from lows of $380 to highs of well over $390, while Bitcoin pushed back above $11,500 after dipping to $11,200
- This strength is an incredibly positive sign for the market, as it shows that buyers still have underlying strength
- Despite this strength, analysts are still short on Ethereum, with one trader noting that a move to its bedrock support at $360 may be imminent
Ethereum and the entire cryptocurrency market is currently witnessing a sharp rebound that came about after a period of extended weakness.
This rebound has not yet been enough to push either BTC or ETH above their respective high time frame resistance levels, but it is nonetheless a positive sign for its mid-term outlook.
Despite ETH’s current strength, analysts are still noting that a move towards $360 could be imminent.
This support region has historical significance and could spark the next leg of its uptrend.
Importantly, one trader is noting that this downside target would be invalidated if Ethereum is able to post a high time frame candle close above $400.
Ethereum Rallies Towards High Time Frame Resistance as Bulls Fight Back
At the time of writing, Ethereum is trading up just over 3% at its current price of $397. This marks a notable rise from daily lows of roughly $380 that were tapped earlier this morning.
The potent reaction to this support help send the crypto’s price flying higher.
In the near-term, one interesting trend to observe is relating to Ethereum’s funding rate on margin trading platforms, which has been neutral for the longest time in a while.
One analyst spoke about this, noting that it is an unusual occurrence that seems to speak to the indecisiveness amongst both bulls and bears.
“This is kinda crazy. ETH funding is completely neutral again, occasionally dipping into negative territory even. This doesn’t happen very often.”
Image Courtesy of Byzantine General.
Here’s Why Analysts Still Think ETH May Reel Lower
One analyst said that he remains ardent in this belief as long as ETH fails to post any high time frame closes above $400.
“ETH: 361~ is where I’ll close my hedge. HTF closes above 400 and I flip back to longs (cautiously).”
Image Courtesy of Chase_NL. Chart via TradingView.
Because of the sheer strength of today’s upswing, Ethereum may be able to close its daily candle above $400 and invalidate the bull case that was established throughout the past week.
Featured image from Unsplash. Charts from TradingView.