Analysts fear more downsides for ethereum are coming despite the recovery from the overnight dip as we are reading more in the latest ethereum news today.
Ethereum has seen some extensive bullishness over the past 24hous with the crypto breaking free from the range-bound trading in the $700 region and surpassed past $1000. Where will the entire market trend in the mid-term depend on whether or not the number one cryptocurrency is able to maintain its foothold in the lower $30,000 region. If the cryptocurrency can hold above and consolidate, it could provide ETH and other altcoins with more room to rally in the days and weeks ahead. One trader noted that ETH could be in a precarious position at the moment and pointed to a high funding phase as a reason for the downside. It also seems that it was rejected from its weekly supply overnight which is why analysts fear more downsides are preparing despite the recovery.
Ethereum gained some parabolic momentum over the past few days which put a harsh end of the phase of consolidation and underperformance against BTC which plagued its price action. The cryptocurrency is back above $1000 after the strong rally and rejection seen over the past day while the bulls are trying to build a strong base of support. It remains unclear whether or not the cryptocurrency will hold above this level as the analysts noted that the high funding and leverage on the market are negative signs for the moment.
At the time of writing, ETH is trading up just over 7% with a current price of $1.050 which marks a swing to the upside from the lows at $720. Where will the market trend next will depend largely on BTC and whether or not it can continue consolidating above $30,000. ETH dropped as low as $890 despite the recovery overnight but the buying pressure was so strong and it helped the coin to rebound.
One trader explained that he is very cautious with the present outlook of the cryptocurrency and noted that the strong rejection overnight could indicate that this move will be sold into:
“ETH: Rejected from weekly supply EQ for now. Predicted funding going ham, seems like apes are mashing the leverage long green button. I’m out of leveraged longs for now.”
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