Ethereum has once again plummeted below $200 after buyer’s failed attempt to recapture this level yesterday, with the turbulence seen by Bitcoin overnight leading ETH to decline alongside most major altcoins.
Analysts are now widely noting that ETH could be in a precarious situation, as it is currently resting above a key support level that, if lost, could lead to some significant short-term downside.
One top trader is also noting that Ethereum’s BTC trading pair is showing a “very scary volatility squeeze” that could mean a “huge impulse” is imminent.
Ethereum is “On the Edge” of Plummeting Lower as it Taps Key Support
At the time of writing, Ethereum is trading down just over 5% at its current price of $190, which marks a massive decline from daily highs of roughly $205 that were set yesterday in tandem with Bitcoin’s rise to highs of $8,100.
The decline from this level has now led Ethereum below its key support within the mid-$190 region, as this is where bulls were able to support the cryptocurrency’s price during its recent capitulatory selloff earlier this week.
Analysts are now noting that Ethereum’s current price region is an “edge” that bulls must ardently defend, as a dip below it could lead it to plummet until it reaches between $170 and $180.
Crypto Michaël, a prominent cryptocurrency analyst and former full-time trader at the Amsterdam Stock Exchange, spoke about the importance of this support in a recent tweet, explaining that he is currently eyeing further short-term downside.
“On the edge here. Losing $195 and we’ll see $170-180 (which is a significant zone for me). So far, not even a slight reaction towards $212-216,” he explained.
On the edge here. Losing $195 and we'll see $170-180 (which is a significant zone for me).
So far, not even a slight reaction towards $212-216. pic.twitter.com/VqdgCMIDqu
— Michaël van de Poppe (@CryptoMichNL) March 11, 2020
ETH is About to See a “Huge Impulse”
Bitcoin jack, another popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes Ethereum is on the cusp of seeing a “huge impulse” against its BTC trading pair due to what he describes as a “very scary volatility squeeze.”
“ETH vs BTC showing a very scary volatility squeeze. Huge impulse incoming. My money would be on down, but I have no interest trading margin on the BTC pair with BTC as collateral. The USD pair however,” he said while pointing to the below chart.
$ETH vs BTC showing a very scary volatility squeeze
Huge impulse incoming
My money would be on down, but I have no interest trading margin on the BTC pair with BTC as collateral
The USD pair however… pic.twitter.com/AxmQoIWZY6
— //Bitcoin 𝕵ack 🐐 (@BTC_JackSparrow) March 11, 2020
Because ETH has been moving concurrently with Bitcoin over the past several days and weeks, where it trends next may be dependent on whether or not BTC bulls are able to guard against significant near-term downside.
Featured image from Shutterstock.
