Ethereum and the entire crypto market have been put in a precarious situation throughout the past few days and weeks, with buyers being unable to maintain control following Bitcoin’s rejection at $11,200.
The intense selling pressure seen here slowed its ascent and caused it to reel down towards $10,200, taking Ethereum and other altcoins down with it.
Much like BTC, ETH was able to post a notable rebound from its recent lows and is now trading around the level at which it has been at throughout the past few days.
One analyst is noting that it has yet to tap a critical support region. This could indicate that further downside is imminent before a macro bottom is formed.
Ethereum Consolidates Following Overnight Rebound
At the time of writing, Ethereum is trading up nearly 5% at its current price of $335. This is around the price at which it was trading at prior to the recent selloff that led it to lows of $318.
The cryptocurrency has primarily been caught within a bout of sideways trading for the past few days, with bulls trying to figure out what comes next following the intense decline from its $390 highs.
Where it trends next will likely depend on Bitcoin, which is also caught within a consolidation phase.
Analyst: ETH has Yet to Reach Critical Support
One analyst observed that Ethereum’s bedrock support exists within the lower-$300 region, and has yet to be tapped by the cryptocurrency.
As such, a visit to this level may be vital for the crypto to form a sustainable bottom that kicks off an uptrend.
Image Courtesy of Cactus. Chart via TradingView.
The coming few days should provide some insights into whether or not this level will be visited in the near-term.
Featured image from Unsplash. Chart from TradingView.
Originally from Bitcoinist.com https://ift.tt/2FXVFfP
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