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Ethereum and the aggregated crypto market has been closely tracking Bitcoin’s price action over the past week, which has resulted in a choppy trading session for ETH that has ultimately led it to drop back towards $185 – which remains a critical support level for the cryptocurrency.
Although ETH is likely to find some support around $185 in the near-term, further weakness in the crypto market may lead it to plunge below this price level, and one analyst is noting that it may target $155 next.
Ethereum Revisits Key Support Level After Facing Swift Rejection at $200
At the time of writing, Ethereum is trading down nearly 4% at its current price of $188 and is currently trading down slightly from 24-hour highs of just below $200.
Over the past seven days, ETH has faced an influx of selling pressure each time it visited the $200 region, which signals that this price region is a key level of resistance that may prove to be insurmountable for the cryptocurrency in the near-term.
Josh Rager, a popular cryptocurrency analyst on Twitter, shared his thoughts on Ethereum’s price action in a recent tweet, explaining that its current price region may not be one of significant accumulation, despite what many analysts and investors had previously believed.
“$ETH Update: Some have called this a mega opportunity, I continue to watch for a confirmed reversal. ETH has been unable to break & hold above the 20MA for past six months. VPVR doesn’t suggest heavy accumulation yet at these levels. BB suggests incoming volatility – be careful,” Rager noted.
https://twitter.com/josh_rager/status/1165258668176216065
Will ETH Target $155 Next? One Analyst Thinks So…
Assuming that $185 does end up failing to be a strong level of support for Ethereum, Mitoshi Kaku, another popular crypto analyst on Twitter, explained that the next key support level currently exists around $155.
“A couple dates I have my eyes on for $ETH – Let’s see if that Kumo keeps offering a warm support! $155 is a key level,” he said while pointing to the below chart.
A couple dates I have my eyes on for $ETH – Let’s ser if that Kumo keeps offering a warm support! $155 is a key level. pic.twitter.com/8Q4MMGuNRI
— Joe Mitoshi 🧑🚀 (@CryptoSays) August 23, 2019
It is highly probable that ETH’s near-term price action will largely be dictated by that of Bitcoin, but a break below the key support levels that lies just below its current price could lead to a bout of capitulation that perpetuates its recent downtrend.
Featured image from Shutterstock.
