Bitcoin’s recent drop to the low-$8,000 has sent bearishness echoing across the aggregated market, leading major altcoins like Ethereum to post relatively large losses. ETH, which was testing an upwards break above $190 prior to BTC’s drop, is now trading below a key support level.
Ethereum’s break below this key support level could mean that further losses are imminent, but analysts are noting that one support region that lies significantly lower than its current price levels could catalyze a massive bull movement that sends its price surging up to $260.
Ethereum Breaks Below $180 as Bitcoin Struggles to Build Upwards Momentum
At the time of writing, Ethereum is trading up nominally at its current price of $176.5, which marks a notable retrace from its recent highs of $190 that were set this past weekend as the cryptocurrency’s bulls attempted to push its price up against the resistance that existed at this level.
This movement was short-lived, however, as Bitcoin’s plummet down to its support at $8,000 led virtually all major altcoins to post similarly bearish moves.
ETH’s recent bearishness was not unanticipated, as analysts had previously noted that the crypto’s surge to $200 in late-October swept its range highs, and that it would likely target its long-term support level around $140 in the near-term.
Liverpool, a popular cryptocurrency analyst on Twitter, spoke about this in a tweet from late last month, noting that Ethereum’s two support levels exist at roughly $170 and $140.
“$ETHUSD – Price swept the range high but range low remains uncleared – Resting liquidity below the equal lows attracts the price – There is also an untested weekly block below – I think we’ll see a lower high in the OTE / 2HR Block and then slowly grind towards the weekly block,” he said while pointing to the chart seen below.
– Price swept the range high but range low remains uncleared
– Resting liquidity below the equal lows attracts the price
– There is also an untested weekly block below– I think we'll see a lower high in the OTE / 2HR Block and then slowly grind towards the weekly block pic.twitter.com/ianjB7mbzy
— Livercoin (@Livercoin) October 27, 2019
Could Drop to $130 Spark Massive Bull Movement?
Liverpool is not alone in suspecting that Ethereum may move to the lower-$100 region in the near-term, as Loomdart – another popular cryptocurrency analyst on Twitter – recently explained that he believes a movement to $130 could spark a bull run that sends the crypto surging towards $260.
“$ETHUSD nearing point of maximum profit for longs IMO. If we start heading lower expecting double bottom at $150s to not hold and price to hit $130s. Upside target is $260s,” he said while referencing the below chart.
$ETHUSD nearing point of maximum profit for longs IMO
if we start heading lower expecting double bottom at $150s to not hold and price to hit $130s
Upside target is $260s pic.twitter.com/FWdi13R236
— loomdart – Holy War Arc (@loomdart) November 16, 2019
Bitcoin’s near-term price action will likely guide that of Ethereum’s, although any further capitulation could prove to be a positive thing for ETH’s long-term price action.
Featured image from Shutterstock.
