- Ethereum has seen intense volatility in recent days, with buyers taking full control of the price action last week before seeing a massive sell-off
- This drop erased the week-long gains and caused the cryptocurrency’s price to plummet to lows of $ 900 set this morning.
- This happened along with Bitcoin seeing some weakness as well, with the benchmark cryptocurrency
- BTC is down to $ 30,000 with sellers in full control of the price action as the cryptocurrency does not find strong buy-side support
- As long as BTC shows persistent signs of weakness, it could also create headwinds for Ethereum and other altcoins
- One analyst notes that ETH is above a critical level of support that makes this possible
Ethereum has seen some intense volatility lately, with sellers wiping out recent gains as they pushed it from highs of $ 1,400 to lows of $ 900 earlier this morning.
Since then, it has posted a strong rebound from these lows and is attempting to roll back USD 1,000 to support, but it remains unclear whether or not this will be a strong level of support and allow for further expansion.
A trader notes that the recent dip has led the cryptocurrency to a significant level of support. Maintaining this level for the next few days could create significantly higher upside potential.
Ethereum is showing signs of weakness as Bulls struggle to defend $ 1,000
At the moment of writing, Ethereum is trading more than 20% at the current price of $ 1,000. This is where it has been trading in recent days, with selling pressure above this level proving to be significant.
Any attempt to convert $ 1,000 into support after the dip to lows of $ 900 was met with intense selling pressure.
If it can stay firmly above this level in the short term, it could show a serious rebound in the coming days and weeks.
Trader: ETH finds strong key-level support
A merchant explained in a recent tweet that ETH has been able to find strong support at a key level, suggesting the benefit is imminent.
“ETH kijun and 20 days sit there like ‘how are you?'” He said pointing to the table below.
Image Courtesy of Ledger. Source: ETHUSD on TradingView.
The next few days should shed some light on Ethereum’s short-term outlook, like any intense one Bitcoin volatility is also likely to impact the price action of ETH and other altcoins.
Featured image from Unsplash. Charts from TradingView.