- Ethereum has been closely tracking Bitcoin’s price action in recent weeks, which caused it to see some intense bearishness yesterday
- The cryptocurrency’s price dove as low as $367 once the selling pressure began peaking
- From this point, it saw a strong rebound that allowed it to recapture that vast majority of these losses
- It now appears to be well-positioned to see slightly further near-term upside
- One analyst believes that this latest dip did put ETH at grave risk of seeing a notable selloff
- There’s one key level that bulls must defend to guard against this possibility coming to fruition
Ethereum and the aggregated cryptocurrency market has flashed some signs of weakness throughout the past couple of days.
This weakness has come about as the result of Bitcoin not being able to break above $12,000, while Ethereum remains trapped beneath $400.
These resistance levels have proven to be insurmountable, and it remains unclear as to whether or not they will be broken anytime soon.
Analysts are noting that Ethereum still remains bullish at the present moment, but it is trading just above a crucial level that – if broken below – could invalidate its macro strength.
Ethereum Shows Subtle Signs of Strength Following Overnight Bounce
At the time of writing, Ethereum is trading up just over 1% at its current price of $383.
This marks a notable rebound from the sub-$370 lows that the cryptocurrency set earlier this week.
It is important to note that this dip was incredibly short-lived, as buyers almost instantly stepped up and absorbed the selling pressure – subsequently leading it up to its current price levels.
This bounce has led one analyst to flip firmly bullish on the cryptocurrency.
“ETH is at a critical crossroads & is looking strong after this pullback. It’s been finding healthy support from $350 – $375 & has painted a beautiful triangle on the 4h (I expect symm triangles to break with the trend). Meanwhile ETHBTC is testing a big area of support,” one trader said.
Image Courtesy of Tyler Coates. Chart via TradingView.
ETH Must Continue Defending $375 Or Else Risk Seeing Further Downside
$375 is the crucial level for Ethereum bulls to defend in the near-term.
A sustained break below this level could be enough to send the cryptocurrency reeling lower and put its macro strength in jeopardy.
One analyst explained that it remains firmly bullish above this level:
“ETH / USD… There is literally no technical reason to be selling… Sure, take profits if your using leverage, but ETH is bullish as long as we hold $375.”
Image Courtesy of Cactus. Chart via TradingView.
Ethereum’s near-term trend will likely be mostly dependent on that of Bitcoin.
Featured image from Unsplash. Charts from TradingView.