Watch Out Bulls: Ethereum Could See Serious Downside if It Loses This Level
Ethereum’s price action over the past few days has been lackluster, with the cryptocurrency trending sideways as Bitcoin and the aggregated crypto market struggle to establish a decisive short-term trend.
One top analyst is now noting that he believes ETH will dip lower before finding any significant support, but bulls could invalidate this bearishness if the crypto is able to maintain above one key level.
Ethereum Extends Its Bout of Sideways Trading as it Struggles to Garner a Short-Term Trend
At the time of writing, Ethereum is trading down just under 1% at its current price of $223, which marks a notable decline from daily highs of $228.
The cryptocurrency has been struggling to garner a decisive trend throughout the past week, with it ranging between lows of $210 and highs of roughly $230 as its buyers and sellers remain at an impasse.
This price action has largely been in tandem with that of Bitcoin, which has similarly been caught within a relatively tight trading range between $8,400 and $8,900.
Analysts are now noting that Ethereum could see some short-term bullishness if its buyers are able to propel it higher in the days ahead, with a continued defense of the support it has formed at $220 being a bull-favoring sign.
AMDTrades, a popular cryptocurrency analyst on Twitter, spoke about both Bitcoin and Ethereum in a recent tweet, explaining that he believes ETH is bullish as long as it maintains above $220 and begins incurring some momentum.
“ETH and BTC: While above $8700 and $220 I feel comfortable being on the long side. I like the pivot up, but I need follow through. No resistance has actually been taken out. It doesn’t get simpler than that,” he noted.
$eth and $btc While above $8700 and $220 I feel comfortable being on the long side. I like the pivot up, but I need follow through. No resistance has actually been taken out. It doesn't get simpler than that. pic.twitter.com/2QEMOFw9fT
In spite of his tempered bullishness, it is important to note that its buyers aren’t out of the woods yet, as its market structure still appears to be fundamentally weak at the moment.
Luke Martin, a highly respected analyst, explained in a recent tweet that he believes the cryptocurrency is poised to see some further near-term downside against Bitcoin, with a target set at roughly 0.022 BTC.
“Have no idea what to expect on the ETH dollar pair but relative to Bitcoin, it still looks like it wants to move lower,” he noted.
If Ethereum does see some significant weakness against Bitcoin, it is a strong possibility that this will subsequently lead it to also see some downside against USD, potentially forcing it below its $220 support.