- Ethereum has seen some brutal price action throughout the past few days and weeks, with the selling pressure seen in the $1,300 region proving to be quite intense
- It is important to note that Bitcoin has been creating massive headwinds for Ethereum as of late, with buyers being unable to guard against an intense decline
- One trader is now noting that where the market trends next will likely depend on whether bulls can defend $1,000
- Another analyst is pointing to a massive ascending channel, noting that the pivot point that ETH may soon visit currently sits around $500
- As such, this may be a level that bears target in the weeks and months to come, should this downtrend be more than just a short-term selloff
Ethereum is plummeting lower today alongside Bitcoin and virtually all other cryptocurrencies. BTC’s inability to hold above $40,000 is behind this decline and has caused the entire market to see some intense selloffs.
Where ETH trends next will undoubtedly depend on whether or not bulls can guard against Bitcoin seeing any intense short-term selloff.
One trader is now noting that Ethereum could see a further 50% drawback in the near-term, pointing to the support that exists in the $500 region.
He also notes that this level has technical significance, as it happens to be a yearly pivot level.
Bitcoin Drags Market Lower: Ethereum Struggles to Hold $1,000
At the time of writing, Ethereum is trading down just under 20% at its current price of $1,025. This marks a massive decline from recent highs of $1,400 set just a couple of days ago.
Where the market trends next will undoubtedly depend on Bitcoin, as it has been guiding ETH and most other altcoins throughout the past few days and weeks.
Unless BTC can defend $30,000 and ETH can continue trading above $1,000, there may be further downside in store for both assets.
Analyst: ETH Could Soon visit “Yearly Pivot” at $500
One analyst explained in a recent tweet that Ethereum’s yearly pivot currently sits within the $500 region, which means that it may continue trending down towards this level in the short-term.
“ETH PF: still using this as roadmap for Q1… looking for a dip to ML, 200-day EMA, and yearly pivot over next few months ~500-530.”
Image Courtesy of Josh Olszewicz. Source: ETHUSD on TradingView.
The coming few days should provide insights into whether or not this is a realistic possibility for Ethereum and shine some light on how Bitcoin will trend in the mid-term.
Featured image from Unsplash. Charts from TradingView