Ethereum’s Reaction to This Crucial Support Level Will Determine its Fate in 2020
- Ethereum has seen some lackluster price action in recent times, largely facing sideways trading similar to that incurred by Bitcoin and the entire crypto market
- It has posted some signs of weakness throughout the past several hours due to it dipping below its well-established trading range
- This has led it down to what analysts are describing as a “crucial level,” and its reaction here could determine its fate in the months ahead
- One venture capitalist is noting that it is imperative that the crypto makes a movement in the near-term, as its strength is degrading the longer it ranges sideways
Ethereum’s sideways trading over the past few weeks may soon draw to a close, as its ongoing break below a key support level will likely lead it down to a critical support level.
Analysts are noting that the reaction to this level could play a heavy role in determining which direction it trends throughout the second half of the year.
If it is unable to post a potent bullish reaction to this support, it could be a sign of underlying weakness signaling that further downside is imminent.
One venture capitalist believes that the chances of it entering a short-term downtrend are growing larger the longer it trades sideways without a clear trend.
Ethereum Inches Lower as One Venture Capitalist Forecasts Further Near-Term Weakness
At the time of writing, Ethereum is trading down by just under 1% at its current price of $228. This is around the level at which the cryptocurrency has previously found some significant support.
If buyers are unable to support it here and don’t boost it back into its previously established trading range between $230 and $250, the crypto could find itself caught within the throes of an intense downtrend.
One prominent venture capitalist explained that he does believe the chances of Ethereum seeing further downside are growing as the crypto continues “fading” at its current price levels.
“The longer BTC & ETH fade here the more likely we take another leg down to test key supports, despite the strong fundamentals of both. I would see this as more macro-jitters driven than specific to crypto’s future.”
Here’s the Crucial Level That May Determine ETH’s Future
One popular cryptocurrency analyst explained in a recent tweet that Ethereum’s reaction to the $220 region will be critical for determining where it will trend in the months ahead.
He notes that he is expecting it to bounce within this price region, but this may depend on Bitcoin’s price action.
“ETH LTF Update: Currently waiting to see if PA will take a dip down and fill some bids in this very strong $220 region which has been a crucial level for price action for a while now… I currently have orders ready to be filled there as would be expecting a bounce to $230.”
Image Courtesy of Cactus. Chart via TradingView Featured image from Shutterstock. Charts from TradingView.
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