Ethereum’s price action has been closely mirroring that of Bitcoin’s in recent times, which has made it prone to seeing heightened levels of selling pressure in spite of ETH’s multiple recent attempts to break above its long-established resistance level at $190.
This selling pressure has sent ETH down to the lower-$180 region while also causing it to form some fresh resistance levels directly above its current price, which could send it reeling lower in the near-term.
Ethereum Finds Support Around $180 as Bitcoin Begins Consolidating
Ethereum’s ability to post a strong and swift bound after its brief drop below $180 signals that this is a strong short-term support level that will likely continue to hold so long as Bitcoin doesn’t incur any significant selling pressure in the near-term.
Ethereum’s price action has been strikingly similar to Bitcoin’s over the past couple of days, and BTC is currently consolidating around $8,500, which appears to be its current support level that bulls are attempting to defend.
Ethereum’s ability to stabilize within the lower-$180 region comes as it faces increasing on-chain volume, which surged over 30% in the past 24-hours.
“24H #ETH Network Stats: Price: $181.76 (-1.9%) $ETH On-Chain Volume: $324M (+32.3%) Active Senders: 209K (-6.1%) Active Recipients: 94K (-0.4%),” TokenAnalyst, a popular analytics group, explained in a recent tweet.
📢 24H #ETH Network Stats:
💲 Price: $181.76 (-1.9%)
💵 $ETH On-Chain Volume: $324M (+32.3%)
👈 Active Senders: 209K (-6.1%)
👉 Active Recipients: 94K (-0.4%)
Visit https://t.co/u90eafzR5J for more info
— TokenAnalyst (@thetokenanalyst) November 16, 2019
Near-Term Resistance Likely to Catalyze Further ETH Losses
HornHairs, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that Ethereum is currently pushing up against a fresh supply region that may force ETH back down to its support around $180.
“$ETH short idea. 2H SFP in the making at a fresh level of supply. This level also lines up with the monthly open. Targeting the most recent swing low for now,” he said while pointing to the chart seen below.
$ETH short idea
2H SFP in the making at a fresh level of supply. This level also lines up with the monthly open.
Targeting the most recent swing low for now. pic.twitter.com/Dz9VJJDOjI
— HornHairs 🌊 (@CryptoHornHairs) November 16, 2019
In the near-term it is imperative that Bitcoin holds steady if ETH is to see any upside, as its close correlation with BTC could prove to be a bearish thing if the support that exists around $8,500 begins to fade as bears ramp up their selling pressure.
Featured image from Shutterstock.