Ethereum has been closely tracking Bitcoin’s price action in recent times, which has proven to be largely bearish. Both BTC and ETH are now trading at key support levels, and any further near-term downside could spark a massive capitulatory sell off that sends the cryptos reeling lower.
For Ethereum, analysts are noting that $140 is a critical support level, and that a break below this level could send the crypto plummeting down over 20%.
Ethereum Nears Critical Support Level as Bitcoin Drops to $7,000
At the time of writing, Ethereum is trading down 2% at its current price of $143, which marks a slight decline from its daily highs of $146 that were set yesterday.
ETH has been establishing an incredibly tight trading range over the past several days and weeks, which first began after the crypto incurred its massive drop to lows of $120 in late-November.
Over the past couple of weeks, this trading range has narrowed to between $140 and $150, with the crypto finding support at the lower boundary and resistance at the upper boundary. This boundary has come about concurrently with BTC’s bout of consolidation within the lower-$7,000 region.
Mayne, a popular cryptocurrency analyst on Twitter, explained in a tweet from yesterday evening that he anticipated both Bitcoin and Ethereum to soon see some relief, although the market’s lackluster price action this morning may have invalidated this possibility.
“$BTC and $ETH: Looking like we are going to get some relief, the question is how high and do you short the bounce? FTA on BTC is $7400 – FTA on ETH is $145,” he explained.
Looking like we are going to get some relief, the question is how high and do you short the bounce?
FTA on BTC is $7400
FTA on ETH is $145 pic.twitter.com/N02wJFCEH9— Mayne (@Tradermayne) December 14, 2019
Analyst: Break Below $140 Could Send ETH Reeling Down To $110
Galaxy, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that ETH is currently trading within a bearish pennant that could spell significant trouble for the cryptocurrency’s near-term price action.
As for where this bearish pennant could lead Ethereum, Galaxy explained that ETH could soon target a movement to $110.
“$140 must hold or it’s heading to $110. $ETH” he concisely explained while pointing to the chart seen below.
$140 must hold or it's heading to $110.$ETH pic.twitter.com/6KQO2sMV4C
— Galaxy (@galaxyBTC) December 14, 2019
It is highly probable that Bitcoin’s near-term price action will play a large role in any major movements seen amongst major altcoins like Ethereum, and a break below $7,000 could confirm Galaxy’s bearish ETH prediction.
Featured image from Shutterstock.
