Ethereum is”Fighting for Its Life” as Bulls Struggle to Defend Critical Support Amount
At the present moment, DeFi-related tokens are struggling, which is creating headwinds for Ethereum.
There’s a possibility that they will continue hampering its upside potential from the near-term.
- Ethereum is currently in the process of rebounding from its daily lows that were set just a few hours ago
- The cryptocurrency has been facing heightened selling pressure as of late, struggling to build momentum as it stays below $370
- One analyst is now saying that the cryptocurrency is”fighting for its life” as it trades right around a crucial support level
- Bulls and bears have largely been at an impasse when it comes to ETH, which is surprising considering that the potency Bitcoin has seen in recent weeks
- It’s important to note that, so far, Ethereum has avoided breaking below its critical”line in the sand” support
At the time of writing, Ethereum is trading up just over 1% at its currency price of $368. This marks a notable upswing from daily lows of $356, but a slight decline from highs within the lower-$370 area.
ETH has been seeing some turbulence as of late, which has mostly come about due to moves seen within the DeFi sector.
One analyst said in a recent tweet that $356 is the”line in the sand” that has to be defended, or else massive downside could be imminent.
Ethereum has been unable to keep up with Bitcoin in recent days, with its price being dragged lower by the headwinds created by the ongoing descent of the DeFi market industry.
Analysts now are saying that the cryptocurrency could be well-positioned to see upside, but only if it can continue defending a last-ditch support level.
A break below this level, however, would be dire and potentially make the crypto to see a massive move lower.
Image Courtesy of Cryptorangutang.
How DeFi tokens trend from the near-term could be one of the deciding factors that influence Ethereum’s outlook.
“ETH fighting for its life while BTC grinds up due to ETH/BTC looking like crap. 356$ is the line in the sand — bull close below and we FUD Vitalik and charges . Pretty bad place to be overexposed to alts,” he said.
This weakness caused it as low as the $350 overnight, that’s the point at which bulls finally stepped up and began protecting against it seeing posting losses.
Featured image from Unsplash.
Published at Wed, 16 Sep 2020 20:00:29 +0000