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Bulls Beware: Ethereum is Breaking a Vital Trendline for the First Time in Weeks

Bulls Beware: Ethereum is Breaking a Vital Trendline for the First Time in Weeks

Mainframe AI

Bulls Beware: Ethereum is Breaking a Crucial Trendline for the First Time in Weeks

Trader Claims ETH Could Soon Break a Key Level 

It’s now consolidating as buyers try to defend against a break below its $580 support, with Bitcoin flashing immense signs of strength.

Charts from TradingView.

The crypto briefly broke over this level earlier this week once the hype surrounding ETH 2.0 mounted, but this quickly faded when bears pushed the crypto back below $600.
Ethereum is flashing some signs of weakness as its price hovers below $600. The selling pressure has proven to be quite significant over the past couple of days.
Image Courtesy of Cold Blooded Shiller. Source: ETHUSD on TradingView.

Published at Wed, 25 Nov 2020 21:00:41 +0000

“A little blip or the end of the run up? ETH losing the trend for the first time since $400.”

This also had impacts on Ethereum, which has been closely monitoring BTC’s overall trend.
1 trader explained that Ethereum is in the process of breaking below a crucial level that has long been supporting its uptrend.
Ethereum and the entire crypto marketplace are now within a consolidation phase as Bitcoin makes a bid at setting new all-time highs.
Whether this trendline can be held above will set the tone for where it trends in the days and weeks ahead. Any sustained break below here could prove to be dire for the cryptocurrency’s outlook.

Bitcoin Rallies Towards All-Time Highs as Ethereum Flashes Signs of Weakness

Featured picture from Unsplash.

  • Ethereum has seen a couple of sharp selloffs through the past day, with bears aiming at keeping it below $600
  • This comes after a strong move higher earlier this week, which enabled the crypto to rally as high as $623
  • The selling pressure here was extreme and caused it to see a sharp decline, from which point forward it has been consolidating
  • Where it trends in the mid-term will largely depend on its continuing reaction to the resistance that sits around $600
  • One trader is imagining that the recent decline has caused it to break below a key moving trendline for the first time since it had been trading at the $400 region a few weeks ago

If bulls are unable to surmount this level from the near-term, it could see a sharp selloff that comes as it shows signs of breaking below a crucial support level.
The benchmark crypto rallied as large as $19,500 overnight before facing an influx of selling pressure that slowed its ascent and caused its price to reel lower.


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