Ethereum is Nearing Crucial Resistance; Rejection Here Could Spark Move to $300
At the time, these dips seemed to put its mid-term strength in peril, but bulls stepped up and ardently defended against it seeing any further downside.
Where the market trends in the near-term must have some serious implications for the smaller altcoins which have been stealing investors’ attention over the past few months.
Where it tendencies next now depends mostly on its response to the immunity region that begins around $380, in addition to Bitcoin’s response to $11,000.
“ETH is probably headed to the peak of the channel here at $400 and from there comes the moment of truth. I prefer the RED route, but a HTF close above the RED region would induce me to flip bullish. This will get interesting,” he said.
Charts and pricing data from TradingView.
That having been said, BTC’s current strength may prevail, and help lift Ethereum past this vital region.
While speaking about the resistance that exists just ahead of where Ethereum is now trading, one analyst explained that it will probably be the only factor that determines its near-term outlook.
He specifically notes that a rejection here could spark a sharp move to the sub-$300 region.
Featured picture from Unsplash.
At the time of writing, Ethereum is trading down just over 1 percent at its current price of $373. This is around where it has been trading throughout the past day, following a few short drops to $350.
Ethereum and the entire cryptocurrency market are flashing some mixed signs. While Bitcoin is rallying towards $11,000 and demonstrating immense signs of strength, ETH and other big altcoins are staying somewhat stagnant.
If ETH confronts a rejection at the immunity region between $385 and $400, it could stop the DeFi bull run in its tracks, and even create a headwind for Bitcoin.
The coming few days should reveal insight into just how significant this cost region will be for where Ethereum tendencies in the coming few weeks.