Ethereum has been hitting some minor milestones since the market crash. Obviously following behind market leader bitcoin, it has posted small recoveries that brought it out from its last month low. But while this has been encouraging for investors, there is still a long way to go, meaning that the digital asset could go either way at this point. Bears are trying hard to drag it down to a new low and crypto analyst Justin Bennett maps out what could give the bears exactly what they want.
Ethereum To $2,000?
Currently, the price of Ethereum is trading close to $3,000. This does not mean that the digital asset has been able to test this coveted level. Rather, it is showing a bit of support around the $2,800 price point. Nevertheless, this remains a volatile market and the asset could easily fluctuate down as it would upwards. Only a strong resistance point stands between ETH and touching $2,000.
Crypto analyst Justin Bennett explains in his latest newsletter what is an important support for the digital asset. He acknowledges the pullback that the asset has experienced following alongside bitcoin, expressing that it sees some key support below its present price. However, without being able to defend the $2,500 level going forward, it would be hard to carve out a higher low.
ETH begins recovery trend | Source: ETHUSD on TradingView.com
A close below $2,500 would see ethereum moving towards its next major support level, which is $2,200. If this support does not hold, bears would successfully take control of the digital asset, dragging it down to $2,000.
However, it is not all bad news. Bulls still exert major control over ETH’s price and if they can hold it above $2,500, “then the next big test is $2,800-$2,900, followed by $3,100,” Bennett says.
Good News For Bitcoin?
The crypto analyst also touched on bitcoin, an asset whose movements ethereum closely follows most times. It’s no secret that the success of bitcoin translates into the success of other cryptocurrencies in the market and that is no different with ethereum.
Related Reading | What A Decline Under $35,511 Would Mean For The Price Of bitcoin
As for bitcoin, given the current momentum in the market, it can be hard to tell what is coming next. But Bennett does not expect the digital asset to be seeing the $30,000 level at any time soon. Given that the cryptocurrency is still trading above the $35,000 point, “I think it makes little sense to assume $30,000,” Bennett says.
This does not mean that a breakout is coming soon as the analyst explains that bitcoin would have to close above the $42,000 area for a confirmation of a bullish breakout, which would, in turn, expose it to the $45,000-$46,000 level.
Bitcoin is trading below $38,000 at the time of this writing.
Featured image from Crypto Hustle, chart from TradingView.com