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Ethereum’s price action has been strikingly similar to Bitcoin’s over the past several days and weeks, with ETH’s correlation to BTC growing stronger as the volatility seen within the aggregated crypto market ramps up.
Analysts are noting that Ethereum may be positioned for further downside in the near-term, which could be driven by the lack of major support that exists directly below its current price levels.
Ethereum Breaks Below $150 as Analysts Eye Further Losses
At the time of writing, Ethereum is trading down nearly 2% at its current price of $149.80, which marks a notable decline from its daily highs of just under $160 that were set yesterday.
It is important to note that ETH is currently sitting off of its recent lows of $147 that were set earlier this morning concurrently with BTC’s drop to $7,200, and its bulls have been able to defend this near-term support level so far.
Ethereum’s bulls have been able to put a significant amount of distance between its current prices and its recent lows of $130 that were set during the recent bout of capitulation seen across the aggregated crypto market that was led by Bitcoin’s drop to $6,500.
Nik Patel, a popular cryptocurrency analyst, recently spoke about Ethereum’s price action in a recent blog post, in which he notes that any further Bitcoin downside could be exaggerated in Ethereum’s USD trading pair.
“I fear the possible downside in Bitcoin will be exaggerated in ETH/USD (as occurred over the past week thanks to ETH/BTC bleeding with it),” he noted.
Will Dwindling Support Lead to Further Losses for ETH?
Patel also notes in his market update blog post that Ethereum’s strong support that used to exist in the lower-$100 region may be dissolving, which could mean that any further downside will be perpetuated and possibly lead to a bout of capitulation.
“There does not appear to be much support left below $125, so it is vital that price is able to remain above here. Given how Bitcoin looks at the moment, however, it appears that ETH/USD is poised for more downside. The following support would be at $100, which is a long way away,” he noted.
Assuming that Bitcoin does lose the support that it has in the lower-$7,000 region, it is highly probable that Ethereum will see notable losses against BTC as its USD support regions falter.
Featured image from Shutterstock.
