Analysts are now noting that the current price region Ethereum is trading at is a make or break level for the cryptocurrency, and one key factor could signal that it will soon break down and post significant near-term losses.
Ethereum Underperforms Bitcoin, But Posts Strong Gains Over the Past Week
At the time of writing, Ethereum is trading up just under 1% at its current price of $143, which marks a slight climb from its daily lows of $140 that were set earlier today.
While looking towards ETH’s Bitcoin trading pair, the cryptocurrency’s price action looks incredibly lackluster, as it is currently trading down over 5%. This poor performance is primarily due to Bitcoin’s recent price rally, which has led it to push against its key resistance level at $8,000.
Although most major altcoins like Ethereum typically move in tandem with Bitcoin, it appears that this time is different, and the ongoing rally could be driven by investors transferring their money from altcoins and into Bitcoin, hoping to catch the next major rally.
Bitcoin Jack, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that ETH is currently trading at a make or break level, and how it trades here could set the tone for how it trends in the weeks and months ahead.
“Make or break for $ETH really,” he concisely noted while pointing to the below chart.
Make or break for $ETH really pic.twitter.com/e6xnfEUwvG
— //Bitcoin 𝕵ack (@BTC_JackSparrow) January 7, 2020
Will the Next ETH Movement Favor Bulls or Bears?
Much to the chagrin of bulls, it does appear that the next major ETH movement may favor sellers, as the crypto has continued to stay trapped beneath a key multi-year resistance level.
“#ETHEREUM | $ETH: Looking forward to the reaction with diagonal resistance, imposed 2 years ago. What changed fundamentally? Absolutely nothing… Failure to break upon test will short all the way down to daddy target,” Teddy, another popular crypto analyst, explained in a recent tweet.
#ETHEREUM | $ETH
Looking forward to the reaction with diagonal resistance, imposed 2 years ago.
What changed fundamentally? Absolutely nothing
Failure to break upon test will short all the way down to daddy target! pic.twitter.com/miIrYuhYAP
— TEDDY (@teddycleps) January 7, 2020
If this trend line does spark another major sell-off, Ethereum could drop to as low as 0.011 BTC according to the target on Teddy’s chart, which marks a massive decline from its current price of 0.017 BTC.
Featured image from Shutterstock. The post appeared first on NewsBTC.
Author: Cole Petersen