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It’s a Critical Moment for Ethereum Following Latest Rejection at $400
Cole Petersen | Aug 13, 2020 | 20:00
- Ethereum has been struggling to garner any strong momentum over the past week
- Overnight it saw a sharp influx of buying pressure that sent its price rocketing past $400 for a brief moment
- This movement was short-lived, however, as the cryptocurrency then posted a strong retrace that sent it reeling back down towards the $380 region
- Analysts are now noting that it’s a pivotal time for ETH, with a potential decline here having grave long-term implications
- That being said, multiple traders are still leaning towards being bullish on Ethereum, with one even setting an upside target of $500
Ethereum and the aggregated cryptocurrency market are struggling to maintain the momentum that drove them higher over the past few weeks.
This momentum began stalling when Bitcoin reached $12,000 and when ETH reached $400 – with the resistance at these levels being incredibly strong.
It now appears that Ethereum is reaching a do-or-die level as it trades below $400 – this is especially clear while looking towards its BTC trading pair.
One analyst is now noting that he expects it to break upwards due to the DeFi trend and other factors, but he also notes that a potential decline could be quite large.
Ethereum Shows Signs of Weakness Following $400 Rejection
Ethereum’s bulls and bears have been engaged in an intense battle over the past week for control of $400.
Overnight – despite Bitcoin remaining steady around $11,500 – ETH’s price surged up towards highs of $401 before it lost its momentum and succumbed to intense selling pressure.
This led it to slide as low as $379, at which point buyers stepped up and sent it back towards $390. It, like Bitcoin, has been consolidating ever since.
One trader is still expecting ETH to see further near-term upside.
He recently put forth a chart showing an upside target of roughly $500, pointing to a potential bull flag that Ethereum has been forming as a reason why upside is imminent.
Image Courtesy of Crypto Rand. Chart via TradingView.
Here’s Why ETH is at a Turning Point – Especially Against BTC
Another analyst recently explained that Ethereum has reached a “decisive point” that will likely determine its mid-term outlook.
While looking towards the cryptocurrency’s BTC trading pair, he explained that he is expecting a rally up towards 0.0375 BTC. He also notes that a downside movement here could be significant.
“ETH – BTC: At a decisive point here; I think the odds of this breaking upwards are greater due to Uniswap/all that jazz. If I’m wrong I’d expect this to retrace back to the mid range (0.5), maybe sweep the most recent H.L.” he said.
Image Corutesy of Bagsy. Chart via TradingView.
Ethereum remains connected to Bitcoin, so for it to see a sustained break above its near-term resistance, it is imperative that BTC also pushes higher.
Featured image from Unsplash. Charts from TradingView.
