After attempting to move higher yesterday, Ethereum (ETH) has once again faced an influx of selling pressure that has thwarted the potential rally that some analysts and investors were previously eying as a strong possibility.
Analysts are now noting that Ethereum may face further selling pressure in the near-term, but they are also noting that a dip towards $160 could spark the next notable uptrend that allows ETH to climb significantly higher.
Ethereum Drops Towards $170 as Sellers Take Control of Crypto Markets
At the time of writing, Ethereum is trading down roughly 2% at its current price of $173.75, which marks a slight drop from its recent highs of $185.
Because Ethereum was unable secure its foothold within the lower-$180 region, it is highly probable that it continues finding further selling pressure in the near-term while Bitcoin consolidates within the lower-$8,000 region.
Josh Olszewicz, a popular crypto analyst on Twitter, recently noted that ETH is currently caught within a bearish technical formation that historically results in downwards breaks.
“1h $ETH: ah ya, the ol’ inverse scythe,” he concisely noted while pointing to the below pattern on Ethereum’s one-hour chart.
ah ya, the ol' inverse scythe pic.twitter.com/o0GuEFb4u1
— Josh Olszewicz (@CarpeNoctom) October 2, 2019
It is highly probable that the fate of Ethereum in the near-term will be largely dictated by Bitcoin, as any sudden movement in either direction will likely give significant guidance to the aggregated crypto markets.
ETH May Dip Lower Before Next Uptrend Starts
HornHairs, another popular crypto analyst on Twitter, explained in a recent tweet that he believes that ETH may dip into the $160 region before it incurs enough buying pressure to spark a fresh uptrend on a longer-time period.
“$ETH #Ethereum: HTF view remains the same, bullish SFP at demand… the type of thing I look for during reversals. LTF shows clearly mapped out levels for the coming days/weeks. Bids from $160-170 not a bad move for a longer-term play,” he noted while referencing the below chart.
HTF view remains the same, bullish SFP at demand… the type of thing I look for during reversals
LTF shows clearly mapped out levels for the coming days/weeks. Bids from $160-170 not a bad move for a longer term play… pic.twitter.com/43Hya3yY2v
— HornHairs 🌊 (@CryptoHornHairs) October 2, 2019
The coming few hours and days will likely elucidate which direction Ethereum and other major alts will move in the near-term, as Bitcoin appears to be currently resting at a critical turning point that may set the tone for how the entire markets will trend throughout the second half of 2019.
Featured image from Shutterstock.