It has been a rocky few days for the crypto markets, with Bitcoin, Ethereum (ETH) and most major altcoins incurring intense selloffs that have led them to erase a significant amount of the gains they incurred throughout the past couple of months.
Ethereum has been particularly impacted by this recent downtrend, which comes as the result of bulls’ inability to sustain the parabolic rally it incurred earlier this month.
Analysts are now noting that the cryptocurrency could be positioned for some further near-term downside, but it may first see a relief rally.
Ethereum plummets nearly 10% as bulls defend key short-term support level
At the time of writing, Ethereum is trading down just under 10 percent at its current price of $228, which marks a notable decline from daily highs of over $250.
ETH’s ongoing downtrend first began earlier this month when its parabolic rally ended at roughly $290.
The fact that bulls were unable to sustain the crypto’s intense upwards momentum that occurred against a backdrop of market-wide bullishness was a warning sign that pointed to some underlying weakness.
Currently, analysts are noting that ETH’s buyers are currently in the process of defending a key short-term support level that it is trading just a hair above, and the support here could be enough to allow it to climb slightly higher in the hours ahead.
Crypto Michaël – a popular crypto trader who was previously a full-time trader at the Amsterdam Stock Exchange – pointed to a chart in a recent tweet that elucidates that he anticipates a bounce at this level to lead ETH to climb roughly 20% against its BTC trading pair.
“Interesting level we’re bouncing from here.”
Image Courtesy of Crypto Michaël
Analyst: the mid-term ETH top is already in
Although it is possible that ETH sees a slight bounce from its current price levels,