Altcoins depend on Ethereum’s key level reaction to the $600 as it’s no secret that the second-biggest cryptocurrency has a huge influence over the altcoin market with the price swings influencing the smaller altcoins so let’s see more in the altcoin news and analysis today.
Where will the altcoins trend in the near term largely depend on ETH’s reaction to $600 as this was a level for the cryptocurrency that was hampering its growth. Breaking above these levels was fleeting with sellers controlling the region between $600 and $620. A firm break above these levels into a resistance could turn the altcoins rocketing higher and as one analyst noted to the crypto’s trading pair with Bitcoin, he is looking to a reaction to a key level to see whether the altcoin market will follow in the mid-term.
Ethereum’s price action was holding serious sway over the Defi market with the general trend guiding the smaller market fragments. It also gained a strong influence over other parts of the market with the overall state of bigger altcoins being correlated with BTC and ETH. Now, the altcoins depend on these price movements as one analyst noted while closely watching ETH see a bullish breakthrough before he drops deeper into the altcoins, noting that he is watching to see how the cryptocurrency will respond to one key level.
At the time of writing, ETH was trading marginally with a current price of $585 but the bulls tried to send it above $600 a day ago along with Bitcoin’s move towards $19,600 however the selling pressure proved to be important here. This is a crucial level to watch in the near-term as flipping this into support is essential for ETH to see more mid-term upside. It also faces strong resistance at the $620 level making it another key level to watch closely. One trader is now closely watching Ethereum’s BTC trading pair to get some more insight for the near-term but he noted a defense of a key near-term support level that will confirm the strength and will open the gates for the altcoins to rally higher:
“ETH: One week later and not much happening here. I still have light exposure to alts – but essentially waiting to see if ETHBTC breaks down, offering a deeper pullback presenting a buying 0.26 – 0.27 levels. Simultaneously looking for buy the dip opportunities on alts.”
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