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Ethereum has had a turbulent week, with much of its recent price action favoring sellers as the crypto has faced a steady stream of downwards pressure in the time following ETH’s recent visit to over $150 earlier this past week.
Although all eyes are closely watching Bitcoin’s near-term price action, it is important to note that one analyst believes that where Ethereum heads in the coming days could provide significant guidance to other major altcoins, regardless of BTC.
Ethereum Stuck in Firm Short-Term Downtrend
At the time of writing, Ethereum is trading down just under 2% at its current price of $143, which marks a notable decline from its weekly highs of $153 that were set just a few days ago.
ETH’s climb above $150 was fleeting, as it appears that this is a resistance region for the crypto, with each visit to this level slowing any momentum and invalidating any signs of bullishness.
Currently, ETH is trading at its lowest price of the week, and the lower-$140 region has been an important support level for ETH in the time following its recent drop down to lows of $134 in late-November.
Nik Patel, a popular cryptocurrency analyst, shared his thoughts on Ethereum’s price action in a recent blog post, in which he notes that its market structure currently remains bearish as it struggles to break above $150.
“For ETH/USD, market structure remains bearish with support turned resistance at $150 capping price. The next area of support is $130. I expect that Ethereum is awaiting Bitcoin’s next major move before picking a direction,” he said.
Will ETH’s Next Move Guide the Entire Altcoin Market?
Although Patel believes that Ethereum’s next notable movement will come about as a result of Bitcoin’s price action, The Cryptomist – another popular crypto analyst – explained in a recent tweet that she believes that ETH may soon make a bullish movement independent of BTC.
She further noted that this upwards movement could spark some bullish momentum across other major altcoins.
“$ETH: You can see the stop hunts below support of this 3 day falling wedge, but support stands. 1D – Heikin Ashi displays possibility of reversal. Only hint of bearish I can see is the double top on RSI. Am monitoring this -could be rewarding move up, which will push alts also.”
https://twitter.com/TheCryptomist/status/1204345462536495104
It is highly probable that the coming few hours and days will help shine a light on whether or not altcoins like Ethereum will be able to begin gaining any momentum independent of Bitcoin.
Featured image from Shutterstock.
