Ethereum’s recent rally and price action lately has been quite a chaos. It has been closely on track with Bitcoin. Moreover, the gains and the losses the benchmark cryptocurrency had were amplifying.
Today has been an uneventful day for Ethereum. Its price was consolidating after its recent rally.
After it saw a capitulatory decline down towards $318, this push higher came about shortly. As a result, bulls managed to push it as high as $355.
Its momentum stalled right around this point. Moreover, its price started to dip lower and lower.
One certain analyst says that its recent trend has been seriously influenced by one key diagonal resistance. He added that it could lead to another violent selloff.
Ever since it was rejected within the upper-$300 regions, Ethereum’s price has been having a hard time gaining its balance.
Before it encountered any meaningful support, this decline intensely sent it going down as low as $318. It was able to soar back above $350 as the rebound from these lows was intense.
However, it has let go of this level. Moreover, it is now possible that it could cut even deeper into its recent gains.
ETHEREUM STRUGGLES TO STABILIZE FOLLOWING RECENT RALLY
As of the moment, Ethereum is trading down just over 1 percent with the current price of $345. This commemorates a decline from its daily highs of $355. Nonetheless, this means there was a notable recovery from weekly lows of $318.
Bitcoin also had this kind of price action. Furthermore, the benchmark cryptocurrency seems to have full control over the aggregated market’s near-term trend.
There is a high chance that it will create a headwind for Ethereum because it had such a strong rejection at its daily highs of $10,800.
THIS KEY RESISTANCE COULD SPARK AN INTENSE ETH DECLINE
One analyst spoke about Ethereum’s technical outlook. He observed that as of late, a diagonal resistance level was formed. He added it caused various violent reactions after shattering above. He stated:
Where will largely depend on Bitcoin, but could have a heightened impact on Ethereum – with its downside target sitting in the mid
Bitcoin would have a big influence on where the entire cryptocurrency market trends next. However, Ethereum would be at risk if there would be a further weakness. After all, its downside target is in the mid-$200 regions.