Ethereum (ETH) has seen some incredibly bearish price action over the past several days and weeks, with Bitcoin’s recent break below $10,000 catalyzing a short-term downtrend that has impacted all major cryptocurrencies.

This bearishness has led ETH to retrace down towards its key support at $240, which its bulls have been ardently defending over the past couple of days.

Now, analysts are noting that there is one critical support that bulls need to defend, and that a strong bounce at this level could catalyze an unprecedented parabolic rally that leads the crypto to surge up towards $700.

Ethereum Retraces Towards Key Support as Bears Begin Gaining the Upper Hand 

At the time of writing, Ethereum is trading down 7% at its current price of $245, which marks a notable decline from daily highs of nearly $270 that were set just prior to its sharp selloff that sent it to lows of $240.

It is important to note that bulls have been able to defend against the crypto dipping below $240, despite the intense bearishness seen by Bitcoin over the past several hours.

If $240 breaks, analysts are now noting that the crypto’s next critical support level exists at roughly $211, and a strong defense of this level could catalyze some serious momentum.

Bitcoin Jack – a top cryptocurrency trader – spoke about this level in a recent tweet, telling his followers that a defense of it could be enough to spark a parabolic movement that far exceeds that seen by ETH throughout February, potentially allowing it to move up towards $700.

“ETH vs USD outlook for next 6 months. A pull back to $166-186 would not surprise me. $211 is a key support in between. Mid/towards end of March should give some support. If that support acts faithful, price could start clearing upwards to $700 or higher June/July,” he said while referencing the below chart.

$ETH vs USD outlook for next 6 months

A pull back to $166-186 would not surprise me

$211 is a key support in between

Mid/towards end of March should give some support

If that support acts faithful, price could start clearing upwards to $700 or higher June/July pic.twitter.com/QQ9I5dvQBB

— //Bitcoin 𝕵ack (@BTC_JackSparrow) February 17, 2020

ETH Could See a Significant Decline Against its BTC Trading Pair Before Finding Support

While looking towards Ethereum’s Bitcoin trading pair, it is important to note that it recently broke out of a long-held trading range between 0.016 and 0.0225 BTC, rallying up to its current price of 0.0258 BTC.

Bagsy, another top trader, spoke about this range in a recent tweet, saying:

“ETH BTC: So far support is holding well with a high volume reaction at that level. I think worst case we move down to retest the former range high which should also provide some support, however I’d like to see price hold current levels from here.”

$ETH BTC

So far support is holding well with a high volume reaction at that level.

I think worst case we move down to retest the former range high which should also provide some support, however I'd like to see price hold current levels from here. pic.twitter.com/DA6Y7KyerI

— Bagsy (@imBagsy) February 16, 2020

In the time since sharing this, ETH has declined back towards the upper boundary of this range, and any further underperformance of Bitcoin could lead it to once again fall into this range, opening the gates for further downside.

Featured image from Shutterstock.