Ethereum is now showing some signs of underlying weakness despite seeing some strong price action over the past few days
After hovering within the upper region of its long-established trading range, the slight downwards movement seen by Bitcoin and the aggregated market has forced it lower
It hasn’t declined beneath any crucial support levels yet, but several sit just below where it is currently trading at
One analyst is noting that its closest support is critical for it to continue defending, as a break below it could be all that is needed for ETH to set a “lower low.”
Ethereum is closely tracking the price action seen by the aggregated cryptocurrency market.
This has exposed it to some slight downside over the past day, as Bitcoin’s rejection at $9,500 has caused major altcoins to erase some of the gains that they have posted throughout the past few days.
Analysts are now noting that ETH is in a precarious position, as it is currently trading just above a “make or break” level that could determine where it trends in the weeks ahead.
One trader is specifically noting that a firm break below $238 could cause Ethereum to see lower lows.
Ethereum Struggles to Maintain Its Recent Bullishness as the Market Declines
At the time of writing, Ethereum is trading down just over 1% at its current price of $239. This marks a notable decline from recent highs of $250 that were set at the peak of its recent uptrend.
$250 happens to mark the upper boundary of the cryptocurrency’s long-held trading range, with a lower boundary existing around $230.
ETH recently traded beneath this range’s lower boundary for an extended period of time, but the break back above it is what helped its price surge higher.
One analyst is now noting that he is expecting ETH to see further downside until it is able to recapture its previous support at $242.
“Clean rejection so far on ETH. Still not back in, will wait until we flip it or I see some divergences in case of another drop,” he explained.
Image Courtesy of Crypto Rangutang. Chart via TradingView.
Here’s the Crucial Level ETH Needs to Defend
Another analyst explained that $238 is a crucial level that buyers need to defend, as a decline beneath it would set the stage for Ethereum to see lower lows.
“ETH HTF Update: Currently PA is testing $238 which previously was a strong level of resistance, LTF seems to be holding as support for the moment but this is super critical for bulls to hold. If we break down from here likely we see a lower low,” he noted.
Image Courtesy of Cactus. Chart via TradingView.
How it trends in the coming weeks may be centered solely around its reaction to this critical near-term level.
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Charts from TradingView.