- Ethereum and the entire crypto market have faced some weakness in the past few days
- While both BTC and ETH are trading well above their recent lows, it’s important to note that bears are in the process of reversing last night’s gains
- This downtrend could prove bearish for ETH as crypto was unable to convert a major level of resistance into support
- This happens when you venture into what an analyst describes as the “crucial” point that could provide serious insights into how the entire market is doing next
- Where medium term Ethereum trends will undoubtedly depend on Bitcoin and its response to support in the region of less than $ 30,000
The Ethereum has been falling along with Bitcoin all morning. The benchmark crypto caused the market to rebound last night, but the selling pressure proved too great for the bulls.
BTC declined in the middle of the $ 36,000 region while Ethereum declined at $ 1,160. This has caused most altcoins to drop lower in tandem as well.
Where ETH trends should be largely dependent on BTC and the rest of the crypto market in the short term, their inability to convert a major level of resistance into support could predict further downward moves.
The Ethereum is sliding down next to Bitcoin
At the time of writing, Ethereum is trading a little over 6% at its current price of $ 1,020. This is a remarkable drop from recent highs of $ 1,160 set overnight.
The inability of the cryptocurrency to gain momentum is due to the fact that Bitcoin faces a similar dilemma.
As long as the miners don’t slow down the selling pressures they are putting on benchmark crypto, there is a good chance it will continue to face immense selling pressures that will slow its rise and create tailwinds for the rest of the market.
Analyst: ETH cannot surpass the “vital” level during recovery
During Ethereum’s overnight rebound, it hit “vital” levels when it hit $ 1,160, which one analyst had hoped would be flipped over in support.
The rejection here was grim and has led to serious disadvantages since then.
“ETH / USD: The macrostructure looks good so far and is recovering well from this important support region. Now is the time to see if that level of previous support is now being turned into resistance. Quite important that both pairings are higher on LTF. “
Image courtesy of Cactus. Source: BTCUSD on TradingView.
Where the Ethereum trends are undoubtedly largely dependent on Bitcoin, an intense BTC sell-off could cause ETH to break below $ 1,000 again and see a deeper disadvantage.
Featured image from Unsplash. Charts from TradingView.