The analysts fear ETH has topped since it hit the $470 resistance level twice and saw a tepid bout of price action despite Bitcoin pressing to new year-to-date highs. While the coin is up by 1.3% in the past day, it is still a few percent below its local highs so let’s learn about it in the latest ethereum news.
Analysts fear ETH has reached the top and fear another strong pullback in the days ahead as it fails to pass the key resistances. One trader suggested that the coin could drop to $380 and $390 as It failed to pass the summer highs of $470. The price dropping to $390 from the current level of $465 could start a correction stronger than the one at 16%. Bitcoin, however, doesn’t need to drop in tandem with Ethereum. Ethereum has seen a tepid bout of price action despite the benchmark cryptocurrency hitting new yearly highs. Ethereum is trading up by 1.3% in the past 24 hours, though it remains a handful of percentage points below the local highs and below the year to date highs of $490.
Analysts fear that Ethereum could have a strong pullback in the days ahead as it fails to pass the key resistances. One analyst shared a chart showing the price action in recent months. The chart shows that the coin is now sitting above the key range of high support but the problem is that the coin tapped the summer highs over the $470 region. It even hit this region twice and failed to break through a few times. He believes that this is a sign that ETH topped on a medium-term basis and that it will face a huge drop to these $380 and $390 region.
With ethereum dropping to $380 from the current price of $465, would mark a correction of at least 16.5%. Analysts believe that BTC Could outpace ETH moving ahead where BTC could surge higher as ETH corrects. Whether this will play out, remains to be seen. The bearish catalyst has formed but analysts believe that with the launch of 2.0, the holders will have the opportunity to earn a regular return of their coins by running a validator node.
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