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Bitcoin and the crypto market have been firmly caught in the throes of immense volatility over the past several days and weeks, with Bitcoin’s sharp swings leading altcoins like Ethereum to follow suit and incur some notable volatility.
Ethereum, which recently experienced a strong upswing, has erased a portion of these recent gains, and is now entering what appears to be a bout of sideways trading.
One analyst is noting that ETH was able to tap its key high-time-frame resistance at $150 in the course of its recent rally, with its firm rejection here being a grave sign of what’s to come next.
Ethereum Sheds Some of Its Recent Gains as Crypto Market Enters Consolidation Phase
At the time of writing, Ethereum is trading down just under 7% at its current price of $132, which marks a notable decline from daily highs of over $150 that were set at the peak of the crypto’s recent upswing.
This rally first began on Thursday afternoon and marked a resolution to the extended bout of sideways trading around $110 that the cryptocurrency has been caught within for multiple days earlier this week.
After posting an upwards break of this consolidation period, ETH rallied as high as $153 in tandem with Bitcoin’s climb to highs of $6,900, with this movement leading the crypto into a strong resistance level that has since led it to decline further.
It now seems as though Ethereum is entering what could be another bout of sideways trading as it ranges between $130 and $135.
ETH Could See Brutal Selloff Following Recent Rejection
Crypto Michaël – a prominent cryptocurrency analyst on Twitter – has been long noting that he was eyeing a movement up to ETH’s key high-time-frame resistance levels at roughly $150 and $180.
Because it was rejected at $150 during the course of its recent uptrend, it does appear that a brutal decline to its current support at around $100 could be imminent.
“Ethereum: Also expecting to see more support tests on this one. Rallied towards the $152-153 target beautifully. Bounced on $120 zone and instantly rejected $135. Might see a rally to $140-144, but expecting to see $103-107 after. Bias changes by break and flip $140-143.”
Also expecting to see more support tests on this one. Rallied towards the $152-153 target beautifully.
Bounced on $120 zone and instantly rejected $135.
Might see a rally to $140-144, but expecting to see $103-107 after.
Bias changes by break and flip $140-143. pic.twitter.com/Jq3H6VA0Sp
— Crypto Michaël (@CryptoMichNL) March 21, 2020
Unless Bitcoin incurs a notable upwards movement in the near-term that also sends ETH rallying higher, it is probable that the cryptocurrency will soon see some further downside.
Featured image from Shutterstock.
