- Ethereum is currently oscillating between highs of $345 and lows of $336 as its bulls and bears reach an impasse
- The cryptocurrency has been unable to see any relief following the massive influx of selling pressure that stopped it from seeing any further gains
- It is still trading well above its multi-week lows of $320, but growing weakness is putting its current stability in jeopardy
- One analyst explained in a recent tweet that he expects ETH to plunge towards $300 before it finds meaningful support
- The dip to these lows could be followed by a strong upswing
Bitcoin’s $11,200 rejection has had grim implications for the aggregated cryptocurrency market. It has caused Ethereum and many other altcoins to see notable losses.
It is important to keep in mind that these losses have fundamentally altered the cryptocurrency’s market structure. One analyst is now noting that Ethereum could be positioned to see significantly further downside in the near-term.
He specifically points to $300 as a target to watch, as a strong bullish reaction to this level is vital for ETH to maintain its mid-term outlook.
Ethereum Shows Signs of Weakness Following Recent Decline
At the time of writing, Ethereum is trading down marginally at its current price of $343. This is around the price at which it has been trading throughout the past few days.
Analysts are noting that where ETH trends in the near-term will likely depend largely on Bitcoin, as the benchmark crypto has had firm control over its smaller counterparts as of late.
ETH has been able to establish the mid-$330 region as a strong support zone. Each dip here has been met with aggressive buying pressure.
If it continues holding above this level, it may be able to begin navigating back up towards its resistance between $380 and $400.
Ethereum Likely to Plunge Towards $300 Before Finding Meaningful Support: Trader
One cryptocurrency trader offered a somewhat grim short-term outlook on Ethereum’s price action in a recent blog post.
He explained that $300 is a “vital” support region, and that it previously acted as strong resistance.
“Taking a look at ETH/USD you can see from this HTF chart that a logical level to find some major support from here would be the $300 region. This is a vital support region which you can see from the chart below, this region was previously resistance back in 2019 so it will be very important that this region remains as support.”
Image Courtesy of Cactus. Chart via TradingView.
If the buying pressure around $335 evaporates, it could cause Ethereum to incur some heavy downwards momentum that sends it to $300.
Featured image from Unsplash. Charts and pricing data from TradingView