If Ethereum (ETH) Cannot Break This Resistance, It Could Drop To $ 300!
Ethereum has performed strongly in the past 24 hours. While the cryptocurrency moved to $ 360, it reached its highest price during the day. As of the writing of the news, the leading altcoin is watching at $ 354.
While this was a bullish price action, Ethereum has seen many resistance above the current price.
Analysts say that the failure of Ethereum to exceed the $ 360 level and convert it to support exposes the coin to a decline.
Bitcoin can affect the price action of ETH at the end of the day. Analysts should watch Bitcoin and Ethereum in the coming days to determine the direction in which the rest of the cryptocurrency market will move .
Ethereum Prepares To Fall As Key Fails To Pass Resistance
The failure of Ethereum to cross the resistances in the $ 365-375 zone could result in a strong correction, according to expert analysts.
Michael Van De Poppe, a crypto analyst and a trader on the Amsterdam Stock Exchange, says that if the cryptocurrency fails to pass this resistance, it could drop to $ 300, followed by a further drop. This area is important as it has been where many ETH fixes have bottomed out in the past two months.
“ETH is moving up and that’s good. However, resistance to break the critical barrier is around $ 366-375. If this breaks, ETH is ready for $ 415. If not, I assume it will go to $ 280 as a possible level for more corrective action in Q4. ”
All Eyes on Bitcoin
Bitcoin’s price movements will determine all other altcoin movements as well.
Analysts are optimistic about BTC after the coin soared to $ 11,000 on Sunday evening. The increase showed to many that the short-term trend was bullish as opposed to a bearish trend.
An analyst shared the chart below. It shows that Bitcoin’s recent price action is crucial to the cryptocurrency’s return from a historical support.
The above analysis by cryptocurrency analyst MacroCRG (@MacroCRG on Twitter) reveals the chart of BTC’s macro price action since the beginning of i2017. More gains in bitcoin price raise Ethereum as the two markets are related in some way.
Still, the precise price performances of BTC and ETH differ as underlying trends drive the magnitude of movements in different directions. Ethereum, as seen in recent months, performed significantly better than Bitcoin due to trends in decentralized finance.