Ethereum has been closely tracking Bitcoin’s price action as of late, which has exposed it to seeing some serious downside.
After peaking at highs of $490 last week, the crypto began losing its powerful momentum and ultimately slid to lows of $320 that were tapped yesterday.
The reaction to this critical support level has been potent, as buyers have not allowed it to decline beneath it.
That being said, whether or not it can continue defending this level may depend almost entirely on how BTC continues reacting to its support between $9,900 and $10,000.
Ethereum Shows Signs of Weakness as It Revisits Key Support
The support levels bolstering Bitcoin and Ethereum have been taking a beating throughout the past several weeks, with sellers harnessing major control over both digital assets.
Ethereum is currently trading just above its key support between $320 and $325. Sellers sparked a movement to these lows earlier this morning, but buyers were able to continue guarding them.
At the time of writing, Ethereum is trading down over 6% at its current price of $335.
Whether or not it is able to continue defending against a dip below these lows will provide serious insights into its near-term outlook.
Analyst: ETH Nears Key Buying Zone as Likelihood of Downside Grows
Image Courtesy of Cactus. Chart via TradingView.
As noted earlier, where Bitcoin moves next will likely be the primary factor that influences Ethereum’s near-term trend.
Featured image from Unsplash. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/32a3t6h
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