Ethereum, like most other major cryptocurrencies, has been facing some bearish price action over the past day, with Bitcoin’s recent movement to below $10,000 leading ETH and the aggregated market to see some intense selling pressure.
Today’s selloff also marked a rejection at a key resistance level for ETH, leading analysts to now note that the crypto could soon dip into the lower-$200 region.
It is important to note that ETH’s macro situation still remains firmly bullish as long as it maintains above a key support level, and analysts are noting that a strong defense of this support could lead it to see massive gains.
Ethereum faces intense rejection, potentially sparking a far-reaching selloff
At the time of writing, Ethereum is trading down just over 1 percent at its current price of $19, which marks a notable decline from its daily highs of just under $230 that was set around this time yesterday.
ETH has been able to find some solid support around $220 for the past day, with each dip below this level being met with some notable buying pressure.
This support, however, may not last too much longer, as TraderXO – a prominent crypto analyst – recently noted that he believes a decisive break below this near-term support level will lead the crypto to retrace until it finds some further support within the low-$200 region.
“ETH – Possible pullback likely – break below 220s I think we visit low $200’s.”
If $200 holds as support, ETH could see some significant upside
Despite the apparent bearishness of a movement to $200, it isn’t necessarily bearish, as it could be just what Ethereum needs to further extend its recent uptrend.
Mitoshi Kaku – another well-respected trader – spoke about the key levels he is watching in a recent tweet, explaining that a strong defense of the support at $200 could lead it to rally up towards its next high time frame resistance at $555, with a break above this opening the gates for a movement to $790.
“Zoom out guys, eyes on the price. The next two targets that will probably offer a good resistance and the support below.”
This type of parabolic rally will naturally require that Bitcoin and the aggregated market further extend its upward momentum, but it does show just how close ETH is to incurring massive upwards momentum.