Ethereum is breaking a crucial trend line for the first time in weeks

• Ethereum has seen a couple of strong sell-offs in the last day, with the bears aiming to keep it below $ 600
• This comes as a result of a strong bullish move earlier this week, which allowed the cryptocurrency to climb as high as $ 623.
• The selling pressure here was intense and caused a steep drop, from then on it consolidated
• The medium-term trend will largely depend on its continued reaction to the resistance hovering around $ 600
• A trader is observing that the recent decline has caused it to break below a key moving trend line for the first time since it was trading in the $ 400 region several weeks ago.

Ethereum and the entire cryptocurrency market are currently in a consolidation phase as Bitcoin bids to set new all-time highs.

The benchmark cryptocurrency rallied to $ 19,500 overnight before facing an influx of selling pressure that slowed its rise and lowered its price.

This also impacted Ethereum, which closely followed the general trend of BTC. It faces strong resistance around $ 600.

If the bulls are unable to break out of this level in the short term, a strong sell off could occur which occurs as it shows signs of breaking below a crucial support level.

Bitcoin rises towards all-time highs as Ethereum shows signs of weakness

Ethereum is showing some signs of weakness as its price hovers below $ 600. The selling pressure here has proved quite significant over the past few days.

The cryptocurrency briefly surpassed this level earlier this week as the hype around ETH 2.0 increased, but this quickly faded as the bears pushed the cryptocurrency below $ 600.

It is now consolidating as buyers seek to defend against a break below its $ 580 support, with Bitcoin showing immense signs of strength.

The trader claims that ETH may soon break through a key level

A trader explained that Ethereum is about to break below a crucial level that has long supported its uptrend.

“A little blip or the end of the run? ETH loses the trend for the first time by $ 400. “

Image Courtesy of Cold Blooded Shiller. Source: ETHUSD on TradingView.

The fact that this trendline can be held above will set the tone of where it goes in the days and weeks to come. Any extended hiatus below could prove disastrous for the cryptocurrency outlook.

Featured image from Unsplash.
Charts from TradingView.