- Ethereum has remained stuck beneath its crucial near-term resistance level at $230
- The crypto has been ranging sideways alongside Bitcoin and many of its peers, but it has been unable to remain within its long-held trading range
- The break below this range appears to be a grim sign for the crypto
- Where it trends next could largely depend on how it reacts to a crucial level that it is trading 10% above
- Holding above this level is crucial for the cryptocurrency’s macro structure
Ethereum has continued trading in close tandem to Bitcoin – leading it to see an incredibly tight bout of consolidation as its buyers and sellers reach an impasse.
As for which direction it will trend next, it does appear that this could depend largely on its reaction to a crucial level that sits in the lower-$200 region.
One analyst is noting that a maintained defense of $210 could be enough to allow ETH to garner some significant upwards momentum.
He even notes that this momentum could lead the crypto up towards $350 in the near-term.
There is one grim technical factor that seems to suggest a test of this level is imminent.
Ethereum Consolidates Beneath Crucial Trading Range Following “Death Cross” Emergence
At the time of writing, Ethereum is trading up marginally at its current price of $227. The crypto has been hovering around this price level for many days now, struggling to recapture its position within its long-held trading range.
Analysts are now noting that ETH could be technically weak and see a decline independent of Bitcoin.
One factor supporting this notion is the recent emergence of a dreaded “death cross” – the likes of which have not been seen since last March.
Bitcoinist reported about this pattern earlier this week, citing an analyst who said:
“Confirmed, death cross here as well – didn’t happen since March.”
Image Courtesy of Teddy. Chart via TradingView.
Death crosses like this tend to be trailing indicators that point to underlying weakness.
Analyst: $210 is a Crucial Level that ETH Buyers Must Defend
The weakness that helped shape this death cross could lead Ethereum down towards its critical high time frame support at $210.
One analyst believes that the reaction to this level will determine the crypto’s future.
“ETH aiming for $350 this year in my opinion… As long as we hold $210 this is still valid. Thinking we flip $350 and see $500 taken out next year,” he said.
Image Courtesy of Cactus. Chart via TradingView.
Despite his bullish sentiment, it is essential to note that a break below this level could have grave consequences, potentially throwing Ethereum into an intense downtrend.
Featured image from Shutterstock. Charts from TradingView.