Ethereum nears “vital” point which could give us some more information on where the market will trend next because the past few days, the entire market faced strong weakness so let’s read more in today’s Ethereum news.
Both BTC and ETH are trading well above the recent lows and it is important to note the bears which are in the process of reversing yesterday’s evening gains. The downtrend could prove to be extremely bearish as the cryptocurrency was unable to flip the key resistance level into support. This comes since ethereum nears “vital” point that will likely give us some more information on the market trends next. Where will ETH trend next in the mid-term also depend on Bitcoin and its reaction to these supports in the lower $30,000 region.
ETH was sliding lower all morning along with BTC and the benchmark cryptocurrency even led the market for a rebound yesterday evening but the selling pressure was strong for the bulls to handle. BTC rejected the mid $36,000 region while ETH rejected $1160 which caused most altcoins to drop lower altogether. While ETH trends in the near-term will depend mostly on BTC and the rest of the market but it was unable to flip one key resistance level into the support that could start a new downside.
At the time of writing, ETH is trading down at 6% with a current price of $1020 which marks a notable decline from the recent highs of $1160 which were set overnight. The inability to gain momentum comes as BTC faces a similar dilemma. If the miners are unable to slow down the selling pressure, there a chance that it will continue facing immense selling pressure which will slow down its increase and will create more tailwinds for the rest of the market.
During the overnight recovery, ETH reached this vital level when it hit $1160 as one analyst hoped it would be resistance turned support. The rejection was quite grim and has led to seeing more downsides since then:
“ETH / USD: Macro structure is looking good and nice recovery so far from this key support region. Now its time to see if this level of previously support will now be flipped into resistance. Pretty vital here that both pairings move higher on LTF.”
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