Ethereum’s price action has been closely mirroring that of Bitcoin’s in recent times, which led ETH to drop as low as $120 this morning before posting a massive surge back up to the $130 region.
ETH’s strong reaction to the $120 level confirms that this is a strong support region for the cryptocurrency and may even signal that these lows will mark a long-term bottom for Ethereum – a possibility that appears to be confirmed by history.
Analysts Agree: Ethereum’s Recent Lows Could Mark a Long-Term Bottom
At the time of writing, Ethereum is trading up over 4% at its current price of $130, which marks a massive climb from its daily lows of $120 that were set earlier this morning concurrently with the capitulatory drop incurred by Bitcoin and most other major altcoins.
This morning’s rapid downturn marked a significant extension of the downwards momentum that the markets had been facing over the past few days, which was sparked by Bitcoin’s drop below its key support level at $7,000 earlier this week.
One factor that should be closely considered in the near-term is the fact that Ethereum’s bounce from its 24-hour lows came about concurrently with incredibly low RSI levels, with levels this low historically marking long-term bottoms for the crypto.
Josh Olszewicz, a popular cryptocurrency analyst on Twitter, spoke about this possibility in a recent tweet, saying:
“Daily $ETH RSI = 21 – has only ever been this low five other times, two of which were local bottoms, the others leading to a bullish divergence.”
In addition to boasting technical strength while looking at ETH’s technical indicators, its weekly chart may also signal that it will soon see significantly further upside in the near-term.
Scott Melker – another popular crypto analyst on Twitter who goes by the pseudonym “The Wolf of All Streets” – explained in a recent tweet that Ethereum’s reaction to its key support levels on its weekly chart points to the possibility that it could soon see some decent upside.
“$ETH (USD) Weekly has sparked my interest, to be honest,” he explained while pointing to Ethereum’s weekly candle chart.
It is highly probable that Ethereum will closely track Bitcoin’s price action in the coming hours and days, which means that all eyes will be closely watching to see how BTC responds to its recent break above $7,000.