Ethereum saw an influx of selling pressure that caused its price to shatter below $400 overnight.
This movement wasn’t isolated to ETH, as Bitcoin and most other major altcoins also witnessed a similar selloff.
It now appears that the cryptocurrency may be in a precarious position as bulls struggle to defend $390. That being said, a recently surmounted descending trendline suggests $380 is the crucial level to watch in the near-term.
As long as Ethereum remains above this level, it may be prone to seeing upside in the near-term.
One analyst even believes the next move higher could lead it towards $500 due to the confluence of a few factors.
Ethereum Shows Signs of Weakness Following Sharp Overnight Decline
At the time of writing, Ethereum is trading down over 4% at its current price of $390. This marks a notable decline from daily highs of $410 that were set yesterday.
These highs came about after bulls started building momentum following the crypto’s break above $400, which came about just over a day ago.
Prior to yesterday’s fleeting breakout, Ethereum had been caught within a bout of sideways trading between $380 and $400. Now that it is once again trading within this range, which of these price levels is broken first should reveal its mid-term outlook.
Analyst: ETH’s Market Structure Suggests a Move to $500 is Possible
Prior to the overnight selloff, one analyst noted that a confluence of factors suggested that a rally towards $500 could be in the cards for Ethereum in the near-term.
Despite this selloff, the crypto still remains above its key support at $380, which appears to make the analysis put forth by the trader still valid.
Image Courtesy of "SmartContracter." Chart via TradingView.
As long as Ethereum continues holding above this crucial support level, bulls may remain in control of its mid-term trend.
Featured image from Unsplash. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/2CWQQlm
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