The overnight plunge seen yesterday evening by the aggregated crypto market has struck ETH real hard.
The cryptocurrency saw a fast and unrelenting plunge that sent it to lows of $450 on some trading platforms after setting new 2020 highs of $495 with BTC’s push towards $19,000.
Within the course of a few minutes, this 10% decline took place. It then sent shockwaves all throughout the entire market.
This decline sent all the major support levels it had formed within the upper-$400 region into shatters.
The two major effects of this overnight plunge are trapping bears who expected further downside and liquidation of late long positions.
It has paved a way for the crypto to witness a more sustainable push past $500, thus, this could mean that it was a technically bullish drop.
ETHEREUM LIQUIDATES LONG POSITIONS IN RAPID OVERNIGHT SELLOFF
As of the moment, Ethereum is trading down just over 1 percent, with the current price of $476. This commemorates a decline from highs of nearly $500 but a notable soar from lows of $450 set just a few hours ago.
Where it trends in the near-term would largely depend on whether or not bulls continue treating this as a strong base of support and can support the crypto beyond $470.
ETH COULD SOON MAKE A BID AT $700 – CLAIMS ANALYST
One certain trader thinks that ETH could be in a good position to make an attempt at reaching $700 in the near-term.
He further said that it needs to claim $480 again in order for this to be a realistic possibility. However, he considered dips like the one seen last night a “god gift”.
Dips and rebounds could give a smoother path for Ethereum to push higher in the coming few days. It’s because those could clear overleveraged and late positions.
Some of ETH’s price action will certainly depend on Bitcoin. Bitcoin shattering breaking its all-time highs could potentially create a mass capital rotation event into altcoins.