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Ethereum’s massive upwards momentum has faltered after its bulls were unable to decisively support ETH above the $220 price level, and its inability to extend its upwards momentum likely stems in part from Bitcoin’s drop to its key support level of $10,000.
Analysts are now noting that Ethereum is nearing a critical support level, and an inability for ETH to hold above this level could open the gates for further losses, while providing traders a great shorting opportunity.
Ethereum Drops Towards $210 as Sellers Step Up
At the time of writing, Ethereum is trading down nearly 2.5% at its current price of $211.75, which marks a fairly deep retrace from its daily highs of nearly $219, but a slight bounce from its daily lows of $210.
Ethereum tried and failed on multiple occasions to decisively break above $220 but was met with significant selling pressure with each visit above this price level.
Because $220 proved to be an insurmountable level of resistance for ETH to break above, it has since shed a significant amount of its recent gains but is still trading up significantly from its one-month lows of below $170.
Nik Patel, a popular cryptocurrency analyst, spoke about Ethereum’s recent price action in a blog post, explaining that the next key resistance level it faces in the near-term exists at $230, which is nearly 10% higher than its current price.
“Looking at ETH/USD, the next area of significance is the support/resistance flip from which price originally broke down at $230; however, prior to this, I would like to get long on a pullback towards trendline support,” he explained while pointing to a trendline support that exists within the lower $200 region.
Could a Dip Below $210 Spark an ETH Downtrend?
Although Patel believes that ETH will revisit its trendline before climbing to $230, UB, another popular crypto analyst, explained in a recent tweet that $210 is a key support level and that a break below it potentially opening the gates for a drop into the $190 region.
“$ETH – Currently sitting at Weekly Support. Ethereum needs to bounce soon or it’ll revisit mid to low $190s. I’ll add to my short on a Daily Close below ~$210,” he explained.
$ETH – Currently sitting at Weekly Support. Ethereum needs to bounce soon or it'll revisit mid to low $190s.
I'll add to my short on a Daily Close below ~$210.#Ethereum pic.twitter.com/r4RckMgO53
— UB (@CryptoUB) September 22, 2019
The coming days and weeks will likely elucidate Ethereum’s near-term trend, which may be largely swayed by Bitcoin’s price action in the coming days and weeks.
Featured image from Shutterstock.
