Ethereum Taps Key Resistance as Analysts Watch for Rebound to Falter

Bitcoin

Ethereum and the aggregated crypto market have seen some slightly positive price action today, with ETH’s intense selloff yesterday coming to an end around $315, which is where buyers stepped up and catalyzed a sharp rebound.

This rebound proved to be somewhat short-lived, however, as it sent ETH to highs of $360 before it faced insurmountable resistance that sparked a rejection.

One analyst, while speaking about this rejection, explained that he is expecting the cryptocurrency’s downtrend to continue in the near-term due to the insurmountable nature of the selling pressure between $350 and $360.

Ethereum Shows Signs of Weakness Following Intense Rally to $360 

At the time of writing, Ethereum is trading up just under 3% at its current price of $343, which marks a notable upswing from recent lows of $315 that were set yesterday.

The dip to these lows came about in the absence of any intense Bitcoin selloff, as the benchmark cryptocurrency had primarily been ranging between $9,900 and $10,200 throughout the day.

ETH was clearly oversold at this point, which was reflected in the sharp surge it saw up to highs of $360 earlier this morning.

It did face a rejection here, which subsequently led it down to lows of $335 before it kicked off what appears to be a consolidation phase.

Analyst: This Key Resistance is Likely to Remain Insurmountable in the Near-Term

While speaking about Ethereum’s recent price action, one analyst explained that a continued bout of trading below the resistance at $350 would likely cause it to see continued weakness.

“ETH: I personally have us at resistance here. Flip this level & I’ll be more inclined to look at short-term longs. This level served as consolidation for the major up move to $418 then served as support 3 times since. This is now ETH’s 2nd attempt at it serving as resistance.”

Image Courtesy of Chase_NL. Chart via TradingView.

The coming few days should provide insight into the long-term importance of this level, and as to whether or not it will continue suppressing its mid-term price action.

Featured image from Unsplash.
Charts from TradingView.
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