Ethereum and the aggregated crypto market retraced today after incurring a sharp influx of selling pressure last night that ultimately resulted in most cryptos pushing up against a resistance level that subsequently led to today’s sell off.
It is important to note that analysts are currently pointing towards a strong support region that exists just below ETH’s current price as a reason why it may still continue its recently incurred uptrend in spite of its recent bearishness.
At the time of writing, Ethereum is trading down 5.5% at its current price of $182, which marks a notable drop from its recent highs of over $195 that were set last night during a run that spread across the aggregated crypto market.
ETH’s recent price action, combined with Bitcoin’s bout of consolidation, has left many traders scratching their heads when it comes to where the crypto will head next, but it does appear that it is nearing a key support region that could ultimately bolster its price action in the near-term.
Financial Survivalism, a popular cryptocurrency analyst on Twitter, spoke a couple of days ago about Ethereum’s key support region that exists right around its current price level, as if it is able to hold above this level it could form a “golden cross” that historically precedes bullish movements.
“$ETHUSD testing the top of the parallel channel on the 4h chart. Will be watching close for a pull back and into a golden cross with the 50 and 200 EMA’s,” he explained in a recent tweet.
$ETHUSD testing the top of the parallel channel on the 4h chart. Will be watching close for a pull back and into a golden cross with the 50 and 200 EMA's. pic.twitter.com/sDKEshmlh1
HornHairs, another popular cryptocurrency analyst on Twitter, shared a similar sentiment in a recent tweet, explaining that $181 is its monthly open as well as a long-term horizontal support level, which means that holding above this is critical for bulls who want to propel ETH higher in the near-term.
“$ETH #Ethereum update: Bulls up to bat… battle of the monthly open/horizontal support at $181. Nothing here to shake bull bias yet as long as level depicted in green holds,” he explained.
Where Ethereum trends in the coming few days will likely give its trend guidance for the comings few months, and its response to its near-term support will likely give traders significant insight into where it goes next.