This Grim Technical Pattern Suggests Ethereum May Plunge to $240
- Ethereum has seen a strong rebound from its recent lows, which has allowed it to outperform Bitcoin and most other digital assets throughout the past day
- This rebound has led it from lows of $320 to highs of over $380
- Bulls are now vying to push the crypto back into the $400 region, which could allow it to reclaim its bullish market structure and see further upside
- One analyst doesn’t believe this is going to happen, however, as he is pointing to the emergence of a technical pattern as a reason why a move to $240 could be imminent
Ethereum and the entire cryptocurrency market have seen a slight uptrend throughout the past few days, with Bitcoin’s continued defense of its $10,000 support creating a backdrop for other assets to recover against.
Although it does appear that ETH is on its way to making a full recovery, there are still some roadblocks that stand in its way.
The $400 level will likely act as strong resistance in the near-term due to its technical significance. If this level is reclaimed and established as support, it may allow for the asset to see serious upside.
One analyst is also pointing to a potential wave pattern that suggests this relief rally will be followed by serious near-term downside.
He specifically is eyeing a move down towards $240 in the near-term.
Ethereum Rebounds from Recent Lows as Bulls Aim for $400
At the time of writing, Ethereum is trading up over 5% at its current price of $373. This is around the price at which the cryptocurrency has been trading for the past few hours.
Throughout the past week, sellers have been aggressively trying to push ETH lower, with its support at $320 holding strong on multiple occasions.
The strength of this level, coupled with Bitcoin’s ability to remain within the five-figure price region, has allowed ETH to recover a good bulk of its recent losses.
Analyst: This Pattern Suggests ETH May Move Towards $240
One analyst explained that there is one technical pattern that suggests further downside is imminent.
He points to wave pattern, noting that this could be the relief rally that comes before a major decline that sends it down to $240.
“I’m wondering if maybe this abc up is complete and is just a shallow one. Far too many people saying bottom is in for my liking, even from chads I typically respect. The bottom aint in imho, and I’m using eth as my barometer because its clearer,” he said.
Image Courtesy of SmartContracter. Chart via TradingView.
If Ethereum does plunge to these lows, it could create a headwind that strikes a serious blow to smaller altcoins that have been performing quite well throughout the past few months.
Featured image from Unsplash. Charts from TradingView.
How to get the Bovada Bitcoin Bonus in 2021 worth up to a maximum total of $3,750
In this article we will explain how to get the Bovada Bitcoin bonus - it's…
What is the Best Bitcoin Wallet for Sports Betting?
Welcome to our aticle which will help you find the answer to the question of;…
Traders Forecast Bitcoin Will See a “Cool-down Period” as Rally Overheats
[ad_1] Bitcoin has been caught within the throes of a consolidation phase ever since its…
Digital Euro, CBDCs and Bitcoin – Bitcoin Magazine
Listen To The Episode: This episode of Bitcoin Magazine’s Fed Watch is a cosmic ride…
Analysts Expect Move to $20,000 High as Bitcoin Holds Key Supports
[ad_1] Bitcoin underwent a rapid correction last evening after the coin pressed as high as…
Bitcoin Entrepreneur Malcolm CasSelle Dies At 50 – Bitcoin Magazine
[ad_1] Malcolm CaSelle, a pioneering blockchain technology and Bitcoin entrepreneur, has died at age 50,…