Ethereum’s reaction to a crucial support level will determine its 2020 fate as it had some lackluster price action in recent weeks. ETH faced sideways trading similar to the one incurred by Bitcoin and the rest of the crypto market and posted some signs of weakness over the past few hours before going below its well-established trading range. Let’s find out more about our ETH news today.
One venture capitalist noted that it is imperative that the cryptocurrency makes a movement in the near-term because its strength will only degrade if it continues ranging sideways. Ethereum’s sideways trading is soon going for a close as it is an ongoing break below the key support level will likely lead it to a critical support level. analysts also noted that the reaction of this level could play a huge role in determining which direction it trends over the second half of the year.
If Ethereum is unable to post a bullish reaction to this support, it could be a sign of an underlying weakness that could spike another downside for the cryptocurrency. another venture capitalist believes that the chances of entering a short-term downtrend are growing larger the longer it trades sideways without no clear trend. Ethereum is trading down by under 1% at a current price of $228 which is the crucial level that the cryptocurrency found some support previously.
Ethereum’s reaction to the support level will determine how ETH will behave over the year and if the buyers are unable to support it and don’t boost it back into the established trading range between $230 and $250, the cryptocurrency could find itself within another intense downtrend trading. One prominent trader explained that the does believe the chances of ethereum seeing more downsides are growing as the cryptocurrency continues fading at the current price levels:
“The longer BTC & ETH fade here the more likely we take another leg down to test key supports, despite the strong fundamentals of both. I would see this as more macro-jitters driven than specific to crypto’s future.”
Also, other analysts believe that Ethereum’s reaction to the $220 region will be important for determining where the next trend will start:
“ETH LTF Update: Currently waiting to see if PA will take a dip down and fill some bids in this very strong $220 region which has been a crucial level for price action for a while now… I currently have orders ready to be filled there as would be expecting a bounce to $230.”
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