Ethereum’s overnight drop could lead the coin towards the $700 price level as it was struck hard by this blow. After setting the 2020 high of $495 with Bitcoin’s push towards $19,000, the cryptocurrency saw a drop that sent the coin to new lows of $450 on some of the trading platforms as we are reading more in today’s Ethereum price news.
Ethereum’s overnight drop of 10% happened in just a few minutes and sent major shockwaves over the entire market. since then, the asset recovered from these lows and started consolidating above $470. One trader even believes that ETH could hit $700 once it is able to break $490. The path to set these new multi-year highs could now be cleared by last night’s drop. Ethereum was the first of the bigger assets to drop last night with Bitcoin following close after. The intensity of the decline was unrelenting and caused the coin to shatter from all major support levels that it formed near the upper $400 region.
The selloff had major side effects, the liquidation of late long positions and trapping the bears that wanted to prolong the downside. This could mean that this was technically a bullish drop since it cleared a way for the crypto to see more strength after the $500 price range. At the time of writing, Ethereum was trading down just over 1% with a current price of $476 which marks a decline from the highs of nearly $500 with a notable surge from lows at $450 that were set a few hours ago. Whether or not the bulls will be able to support the cryptocurrency move above $470, and will continue the strong base of support, will determine where the trend will move in the near-term.
One trader thinks that Ethereum is poised to make an attempt at $700 in the near-term as he noted that it needs to reclaim the $490 price range for this rally to happen but he calls dips like the one seen last night as a “God gift.” He said:
“Above $490 i see a clear path to 700s. A drop to $430 is a god gift.”
Because the dips and rebounds are often called “Darth Maul” candles, these positions could provide a clear path for ETH to push higher in the upcoming days. Some of the movements depend on Bitcoin, but BTC is also expected to break its all-time high record this year.
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