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Ethereum’s price has been slowly grinding lower over the past 24-hours which comes about as the asset sees an even further decline in its on-chain volume, and ETH is now at risk of breaking below a key short term support level, which could mean that a period of capitulation is imminent.
In spite of this, one prominent analyst is noting that he believes that any potential price dip for both Ethereum and Bitcoin in the near-term could simply be a bear trap that provides traders and investors alike with an ideal long-entry.
Ethereum Grinds Lower as it Nears Key Short-Term Support Level
At the time of writing, Ethereum is trading down just under 2% at its current price of $182, which marks a notable drop from its 24-hour highs of $186 that were set yesterday.
Ethereum’s downwards movement today comes concurrently with a similar movement by Bitcoin, which hit highs of $9,400 overnight before it began a short-term downtrend that has sent it to beneath $9,200.
This bearishness today is simply an extension of the period of choppy trading that has been experienced by the aggregated crypto markets over the past several days and weeks, and Ethereum is currently caught in a trading range between $180 and $192, with the former price being a key support level that has held strong on multiple occasions over the past several weeks.
ETH has also been facing declining trading volume over the past week, which has dropped even further today, with TokenAnalyst noting that it has plummeted by nearly 34% over the past 24-hours.
“4H #ETH Network Stats: Price: $183.54 (+0.9%). $ETH On-Chain Volume: $192M (-33.7%). Active Senders: 198K (-17.1%). Active Recipients: 87K (-6.3%),” they explained.
📢 24H #ETH Network Stats:
💲 Price: $183.54 (+0.9%)
💵 $ETH On-Chain Volume: $192M (-33.7%)
👈 Active Senders: 198K (-17.1%)
👉 Active Recipients: 87K (-6.3%)Visit https://t.co/u90eafzR5J for more info
— TokenAnalyst (@thetokenanalyst) November 3, 2019
Analyst: ETH Price Drop Could Provide Ideal Long Entry
Mayne, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes any near-term breakdown for both Ethereum and Bitcoin could simply be a bear trap that is followed by a large movement upwards, which would mean that the next dip could be an ideal time to long the cryptocurrencies.
“$BTC and $ETH are consolidating. I think if we break down it’ll be a bear trap that you want to long. I expect bears to talk shit under all my bullish posts, sentiment will line up nicely. Same people talking shit are the ones who will be rebuying their spot back above $10k,” he explained while referencing the charts seen below.
$BTC and $ETH are consolidating. I think if we break down it'll be a bear trap that you want to long. I expect bears to talk shit under all my bullish posts, sentiment will line up nicely.
Same people talking shit are the ones who will be rebuying their spot back above $10k. pic.twitter.com/FnOkKS5M6I
— Mayne (@Tradermayne) November 2, 2019
The coming few hours and days will likely elucidate whether or not Ethereum and other cryptos will be able to break out of their recently established trading ranges, or if further consolidation is imminent.
Featured image from Shutterstock.
