- Bitcoin’s inability to push past $10,400 has created a major headwind for the aggregated market
- This has resulted in ETH’s price plunging towards its key support levels throughout the mower-to-mid $300 region
- Because Ethereum has grown highly correlated to Bitcoin as of late, where it trends next may depend almost entirely on the benchmark cryptocurrency
- That being said, one analyst is noting that the strong support ETH has at $320 may be enough to stop it from seeing any major near-term downside
- This level has been visited and defended on multiple occasions throughout the past few days, with each one sparking a slight rebound
Ethereum has been closely tracking Bitcoin’s price action as of late, which has exposed it to seeing some serious downside.
After peaking at highs of $490 last week, the crypto began losing its powerful momentum and ultimately slid to lows of $320 that were tapped yesterday.
The reaction to this critical support level has been potent, as buyers have not allowed it to decline beneath it.
That being said, whether or not it can continue defending this level may depend almost entirely on how BTC continues reacting to its support between $9,900 and $10,000.
Ethereum Shows Signs of Weakness as It Revisits Key Support
The support levels bolstering Bitcoin and Ethereum have been taking a beating throughout the past several weeks, with sellers harnessing major control over both digital assets.
Ethereum is currently trading just above its key support between $320 and $325. Sellers sparked a movement to these lows earlier this morning, but buyers were able to continue guarding them.
At the time of writing, Ethereum is trading down over 6% at its current price of $335.
Whether or not it is able to continue defending against a dip below these lows will provide serious insights into its near-term outlook.
Analyst: ETH Nears Key Buying Zone as Likelihood of Downside Grows
One analyst explained in a recent tweet that he believes the $320 region is a good Ethereum buying zone due to the strong support existing here.
“ETH HTF Update: Strong support at $320 seems to be a nice buying zone for buyers, nice initial wick and response so far. In terms of resistance, PA is still failing to break above $360, It seems as price action wants to head down. Staying neutral for now…” he said yesterday just before the crypto dipped to below $330.”
Image Courtesy of Cactus. Chart via TradingView.
As noted earlier, where Bitcoin moves next will likely be the primary factor that influences Ethereum’s near-term trend.
Featured image from Unsplash. Charts from TradingView.
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