Crypto News

Analyst: Ethereum Poised for Further Downside as Support Begins Evaporating

Ethereum’s price action has been strikingly similar to Bitcoin’s over the past several days and weeks, with ETH’s correlation to BTC growing stronger as the volatility seen within the aggregated crypto market ramps up.

Analysts are noting that Ethereum may be positioned for further downside in the near-term, which could be driven by the lack of major support that exists directly below its current price levels.

Ethereum Breaks Below $150 as Analysts Eye Further Losses 

At the time of writing, Ethereum is trading down nearly 2% at its current price of $149.80, which marks a notable decline from its daily highs of just under $160 that were set yesterday.

It is important to note that ETH is currently sitting off of its recent lows of $147 that were set earlier this morning concurrently with BTC’s drop to $7,200, and its bulls have been able to defend this near-term support level so far.

Ethereum’s bulls have been able to put a significant amount of distance between its current prices and its recent lows of $130 that were set during the recent bout of capitulation seen across the aggregated crypto market that was led by Bitcoin’s drop to $6,500.

Nik Patel, a popular cryptocurrency analyst, recently spoke about Ethereum’s price action in a recent blog post, in which he notes that any further Bitcoin downside could be exaggerated in Ethereum’s USD trading pair.

“I fear the possible downside in Bitcoin will be exaggerated in ETH/USD (as occurred over the past week thanks to ETH/BTC bleeding with it),” he noted.

Will Dwindling Support Lead to Further Losses for ETH? 

Patel also notes in his market update blog post that Ethereum’s strong support that used to exist in the lower-$100 region may be dissolving, which could mean that any further downside will be perpetuated and possibly lead to a bout of capitulation.

“There does not appear to be much support left below $125, so it is vital that price is able to remain above here. Given how Bitcoin looks at the moment, however, it appears that ETH/USD is poised for more downside. The following support would be at $100, which is a long way away,” he noted.

Assuming that Bitcoin does lose the support that it has in the lower-$7,000 region, it is highly probable that Ethereum will see notable losses against BTC as its USD support regions falter.

Featured image from Shutterstock.

The post Analyst: Ethereum Poised for Further Downside as Support Begins Evaporating appeared first on NewsBTC.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Related Crypto News

Bitcoin has become nothing but the new Che Guevara T-shirt
Bitcoin promised to create a new normal in finance, but it turned out to be nothing but the old...
TNABC Miami’s Eighth Annual Conference Goes Virtual, Event Underscores Technology’s Important Role
On January 28-29, 2021, The North American Bitcoin Conference (TNABC) is preparing to kick off its eighth exhibition with...
China turns up pace on CBDC release, tests infrastructure prior to adoption
The yuan is not seen as a major currency. Could digitizing it change that? China is breaking new ground...
French Programmer Sent Bitcoin Donations to Far-Right Activists Who Participated in the US Capitol Riots
A crypto forensic analysis reveals that a French donor sent over $500,000 worth of bitcoin (BTC) to far-right activists...
Why This Analyst Expects Bitcoin Price Consolidation After the Recent 15% Drop
Bitcoin faced a strong drop into Friday. The cryptocurrency, after peaking at $40,000, fell as low as $34,000 in...
Venezuelan President Maduro Promises 2021 Will Be the Year to Boost Usage of Petro
The Venezuelan president, Nicolás Maduro, has claimed that 2021 will be the year of the state-backed petro (PTR) token....

Featured Crypto News

Canada’s first public Bitcoin fund hits $1 billion
3iQ’s Bitcoin QBTC fund has surged 900% in market cap since October 2020, breaking a $1 billion milestone. Canadian...
US Fed: CBDC a ‘very high priority’ to combat bad private sector money
The United States Federal Reserve needs its own digital currency to protect against a possible overnight proliferation of stablecoin...
Coinbase Issues a Public Apology to EU and UK Customers — Did Not Address Its Global Issues
Cryptocurrency exchange Coinbase published a statement addressing their U.K. and E.U. customers, apologizing for system outages and account restrictions....
Anchorage Obtains Federal License to Operate as Crypto Bank From the OCC
The U.S. Office of the Comptroller of the Currency (OCC) has granted conditional approval to crypto custodian Anchorage to...
Respect the Pomp: RSK’s token spikes 30% after founder appears on podcast
RIF got a nice price boost hours after its founder appeared on Pomp’s podcast. RIF, the utility token for...
Bitcoin Reclaims $40,000 Just days after Falling to $30,000
After a sharp correction that lowered its price to nearly $30,000, Bitcoin is close to reclaiming $40,000. The leading...