Ethereum (ETH) has been facing a significant influx of selling pressure over the past 24-hours, which has partially been driven by the selloff that Bitcoin experienced earlier today that sent the embattled cryptocurrency reeling below $8,000.
Analysts are now noting that ETH is caught in a wide descending triangle that could send the cryptocurrency plummeting significantly lower in the near-term, and analysts are now targeting $170 as its next target.
Ethereum Plummets Towards $170 Amidst Crypto Market Sell-Off
At the time of writing, Ethereum is trading down nearly 5% at its current price of $175, which marks a significant drop from its recent highs of over $190 that were set last week when ETH quickly surged towards $200 before incurring a massive influx of selling pressure that sparked its current downtrend.
It is imperative to note that Ethereum’s bearishness as of late has simply been the result of Bitcoin’s inability to find any significant stability within the lower-$8,000 region, as bears were able to force BTC below its previous support levels and towards its long-established support at $7,800, and its lack of bullish momentum may spell trouble for its near-term trend.
Although it remains unclear as to whether or not altcoins will be able to break free of Bitcoin’s influence, it is probable that they will trend lower unless there is some sort of event that sparks a fresh influx of capital into the markets.
Analysts Note That ETH is Caught in Descending Triangle
One bearish technical formation that Ethereum is currently caught within may point to the possibility that significantly further losses are imminent for the cryptocurrency, as it is currently in a descending triangle similar to that which Bitcoin was caught in for months prior to its drop below $10,000.
The Cryptomist, a popular crypto analyst on Twitter, told her over 40k followers about this formation, explaining that she believes ETH will target $170 next.
“$ETH: Descending triangle, similar set up to what btc was yesterday before the drop (see yesterday bitcoin post). We may have one more resistance touch before drop too $170,” she said while pointing to the below chart.
Descending triangle, similar set up to what btc was yesterday before the drop (see yesterday bitcoin post)
We may have one more resistance touch before drop too $170 pic.twitter.com/0t7lr7rq3h
— The Cryptomist (@TheCryptomist) October 16, 2019
Unless Bitcoin finds massive support around its current price levels and surges higher, it is highly likely that major alts like Ethereum will continue to trend lower until the entire markets are able to incur a decisive uptrend.
Featured image from Shutterstock.