- Ethereum is showing some signs of weakness as its price trades below $380
- Breaking above this level was a significant technical development that caused many analysts and traders to flip bullish on the crypto
- As its weekly candle close fast approaches, however, bears seem to be regaining control over its near-term outlook
- There’s a high probability that this will cause it to see further near-term downside, potentially striking a blow to its macro market structure
- One analyst is expecting both Bitcoin and Ethereum to see further weakness in the near-term, noting that there’s a high likelihood that downside is imminent
Ethereum has been attempting to boost its market structure throughout the past few weeks, with bulls previously posting an ardent defense of its $320 lows set just weeks ago.
After rebounding from here, the cryptocurrency struggled to break above $380 until it was ultimately able to do so earlier this week.
The break above this level was technically significant and strengthened its market structure.
That being said, analysts are now noting that where it trends next may depend almost entirely on whether or not it can recapture this level before its weekly candle close.
Unless bulls catalyze some intense near-term momentum, it does seem as though downside could be imminent.
Ethereum Struggles to Find Support Following Break Below $380
At the time of writing, Ethereum is struggling to find any significant support as its price trades below $370. Bears are currently attempting to push it below this crucial level.
The significance of this recent selloff should not go understated, as the break below $380 elucidates underlying weakness amongst the cryptocurrency’s buyers.
Unless it reclaims this level in the coming few hours, it will likely post a somewhat weak weekly close that leads it to see further downside.
Analyst: BTC and ETH Poised to See Serious Downside
While speaking about the market’s near-term outlook, one analyst explained that he believes both Bitcoin and Ethereum are both positioned to see some serious weakness in the near-term.
He believes that this will result in losses that create a headwind for smaller altcoins.
“ETH update – No longer on the verge. ETH and BTC not looking to hot atm, potentially more downside to come. I’ve reduced risk on altcoin positions.
Image Courtesy of Chase_NL. Chart via TradingView.
If both Ethereum and Bitcoin plunge in the near-term, it will likely send shockwaves throughout the market that further damage the mid-term strength that many altcoins had been seeing.
Featured image from Unsplash. Charts from TradingView.