Ethereum has seen strong selling pressure over the past day, which has taken a blow on the technical strength caused by yesterday’s buying pressure.
This decline has made it increasingly unclear where crypto could head in the short term, but it seems like it could be headed significantly lower in the short term.
One analyst, speaking of this recent decline, noted that it appeared to have been triggered by a so-called “whale” that had previously driven the price of cryptocurrency up by spoofing buy orders.
The analyst notes that this whale “pulled the carpet” at ETH, which triggered today’s decline. As a result, there could be further heightened weakness in the short term as it has now broken below an important support level.
If this level is not reached again, there is a high probability that the cryptocurrency will continue to decline in the short term.
Ethereum sees a sharp decline as market-wide weakness builds
At the time of writing, Ethereum is trading over 8% at its current price of $ 357. This marks a remarkable drop from its daily highs of $ 390, which was reached at the peak of the uptrend yesterday.
That boom came along with BTC’s surge to highs of $ 10,600, which is roughly the price at which it found significant selling pressure that slowed its rise.
Analysts are now realizing that the near-term direction of the overall market could largely depend on BTC’s reaction to $ 10,200, where it has found strong support over the past few weeks.
If the benchmark cryptocurrency falls below this level, it could create tailwinds that further detract from Ethereum’s recent strength.
ETH Whale ends upward trend after fake orders
Speaking of Ethereum’s recent uptrend, one analyst noted that it was mainly driven by fake orders from a single whale on Bitfinex.
That being said, his removal of those commandments may have started today’s downward trend. It also helped move the cryptocurrency below an important level of support within the $ 360 region that was previously a strong support.
“ETH update: Well done, Mr. Whale man. Said at the beginning of this rally that it was run up by a whale. And there is the carpet. According to some of my previous analysis, it should bounce around here, but I’m not inclined to get in yet, too much dump too fast. “
Image courtesy of Chase_NL. Chart over TradingView.
How Ethereum performs in the days ahead may largely depend on its continued reaction to the support it finds at $ 350 and whether or not it can reclaim $ 360 in the short term.
Featured image from Unsplash. TradingView charts.
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