Ethereum is Struggling to Hold This Crucial Level Following Recent Rebound
- Ethereum has been closely tracking Bitcoin’s price action throughout the past few days, which has caused it to bear witness to immense volatility
- The cryptocurrency’s price rocketed up to highs of $1,400 last week before facing intense inflows of selling pressure that sent it to $900
- It has since recovered from this decline, and it now in the process of trying to flip $1,100 into a support level
- This has become a key level for the cryptocurrency, and it is now in the process of trying to rally above this level one again
- One trader explained in a recent tweet that flipping this level to support is vital for Ethereum to see any further upside in the mid-term
Ethereum has seen some mixed price action throughout the past 24 hours, with the crypto reeling to lows of $900 before rebounding to $1,200, before once again facing a rejection and drifting lower.
Bulls are now trying to flip $1,100 into support, as this level has proven to be vital for the crypto throughout the past couple of days.
It remains unclear whether or not they will be successful, and one trader is noting that a bull case can be made for ETH so long as it holds above $1,012 in the day ahead.
Ethereum Reclaims $1,100 as Bulls Target Further Upside
At the time of writing, Ethereum is trading up just under 2% at its current price of $1,110, which marks a notable surge from its 24-hour lows of $900.
The cryptocurrency is now trying to flip $1,100 into support, but the selling pressure here indicates that it may see further near-term downside.
A firm break below this level will likely lead it to re-test its $1,000 support, but where it trends next will undoubtedly depend largely on Bitcoin.
Trader: ETH Needs to Defend $1,000 for Bull Thesis to Remain Intact
One trader noted in a recent tweet that the lower-$1,000 region is the key level to be watching in the near-term.
He believes that a continued defense of this level could allow the entire market to see significantly further momentum in the days to come.
“ETH – Ethereum above $1,163 and my argument that the bottom is in is a lot stronger. Must hold $1,012 *if* retested as support for the argument to be valid as well. Overall, very bullish on Ethereum as I’ve mentioned quite a bit.”
Image Courtesy of UB. Source: ETHUSD on TradingView.
Bitcoin will undoubtedly shape Ethereum’s short-term price action, making it vital that BTC continues finding stability in the mid-$30,000 region.
Featured image from Unsplash. Charts from TradingView.