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- Although the altcoin market has not followed Bitcoin’s rise in recent times, it is still fully exposed to its downside
- Cryptocurrency Faced Another Rejection At $ 13,800 Overnight That Made It Fall Into The Under $ 13,000 Region
- This created headwinds that ended the breakout rally that Ethereum started forming yesterday
- ETH has now written off all of its recent gains and is now at risk of seeing a significant further downside
- An analyst is targeting a move that will cause it to fall towards $ 315 in the short term
Ethereum has been hit hard by Bitcoin’s recent downturn, as its attempt to form a breakout rally was halted overnight after seeing a strong selloff.
This selloff also came after some massive sell orders placed on exchanges such as Coinbase, with a total of over 8,000 tokens being moved by whales across various trading platforms.
The short-term trend can largely depend on how strong its $ 380 support is.
An analyst believes that a break below this level could open the door to further losses potentially reaching as high as $ 315.
Ethereum fails to post the breakout rally due to the decline in Bitcoin
At the time of writing, Ethereum is trading down just under 4% at its current price of $ 382. This is where it has been trading for the past few days and weeks, with buyers and sellers unable to control its trend.
Yesterday he was able to hit $ 400 in a sharp move that happened rather unexpectedly.
This move was fleeting and was followed by some severe bears as the bears surged full force after hitting highs of $ 404.
Analyst: ETH could slide towards $ 315 if it loses key support
Should Ethereum break out of the $ 368 to $ 380 support region, it could suffer severe short-term losses.
An analyst talked about it in a recent tweet, noting that it could drop as high as $ 315 if this key region were broken down below.
“Ethereum: Always the same point of view here. Holding support, but barely. Losing $ 368-380 and I think we will see a support area of $ 315”.
Image Courtesy of Crypto Michaël. Source: ETHUSD on TradingView.
The next few days should provide some in-depth information on where Bitcoin and altcoins will go in the days and weeks to come.
If ETH sees an immense decline in the short term, it could create shockwaves that trigger further capitulation among the smaller altcoins.
Featured image from Unsplash. Charts from TradingView.
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