Ethereum is once again consolidating within the lower-$200 region. This comes shortly after it was on track to gain some ground against Bitcoin, rallying to highs of over $215 before descending lower.
Buyers are ardently attempting to keep the cryptocurrency above $200, as a decline beneath this level seen yesterday was met with significant buying pressure that ultimately led it higher.
Although analysts are noting that it does appear to be well-positioned to see a bounce around its current price levels, one is also adding that a decline below $190 could be dire.
He even notes that it could trigger a “car crash” style decline that leads it to cut deeply into its recent gains.
At the time of writing, Ethereum is trading down just under 2% at its current price of $202. This marks a notable decline from weekly highs of over $215 that were set just a few days ago.
It also marks a rebound from daily lows of $194 that were set yesterday evening as bears attempted to invalidate the cryptocurrency’s strength.
This weakness has come about as the result of a recent technical breakdown that caused Ethereum to invalidate a triangle formation that it was caught within.
One analyst spoke about this breakdown in a recent tweet, noting that the crypto’s “moon mission” is now delayed, referencing a chart pointing to overt technical weakness.
If buyers fail to hold it above $200 in the coming hours, it could open the gates for Ethereum to see even further downside in the days and weeks ahead.
He explained that he longed yesterday’s dip and is looking to close out above $205. Although it may be flashing some signs of short-term strength, he also notes that the crypto will be an “absolute car crash” if it breaks below $190.
“Took out an ETH long into the lows yesterday and a smaller second position overnight on the dip down. Looking to try and bag $205+. Original position was short from $210. ETH is going to be an absolutely car crash if it starts breaking down below the lows at $190,” he explained.
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Published at Fri, 22 May 2020 20:00:39 +0000