Ethereum’s bulls were unable to defend against the cryptocurrency breaking back into the $120 region, which is where ETH has consistently found strong support during the downtrend that it has been caught in over the past several months.
It is probable that this region will continue to hold strong in the near-term, as analysts are now noting that they anticipate Ethereum to outperform Bitcoin in the coming days and weeks.
Ethereum Drops Below $130 as Crypto Markets Reach Turning Point
At the time of writing, Ethereum is trading down 3% at its current price of $128, which marks a notable drop from its daily highs of multi-day highs of just under $140 that were set this past weekend concurrently with Bitcoin’s surge to highs of $7,500.
It is important to note that Bitcoin has been the determining factor for Ethereum’s recent price action, which may mean that ETH is in for further losses as BTC struggles to maintain above $7,000.
The two key support levels that traders ought to watch in the near-term currently exist at $125 and $120, as these are both levels at which the crypto has found tremendous buying pressure.
In the short-term, Ethereum has been underperforming Bitcoin, as it is currently trading down over 1% against its BTC trading pair.
In spite of this near-term bearishness, the bull case for ETH still remains strong, and Scott Melker – a prominent cryptocurrency analyst on Twitter – explained in a recent tweet that he anticipates Ethereum to outperform Bitcoin in the coming days and weeks.
“$ETH looks somewhat better than $BTC at the moment,” he concisely noted.
— The Wolf Of All Streets (@scottmelker) December 31, 2019
Melker is not alone in expecting the cryptocurrency to see some further upwards momentum in the near-term, as HornHairs, another popular crypto analyst, explained that he believes ETH could see a relief bounce in the near-term after it swept its range lows.
“$ETH short update. May have gotten shaken out here, more setups to come. Closed for the same reason as the BTC short. The correlation with BTC and ETH led me to believe we’d push up after Monday’s low getting swept on BTC,” he explained while pointing to the chart seen below.
$ETH short update
May have gotten shaken out here, more setups to come. Closed for the same reason as the BTC short. The correlation with BTC and ETH led me to believe we'd push up after Monday's low getting swept on BTC.
+1.24R (before fees) pic.twitter.com/d6E3LplBSl
— HornHairs 🌊 (@CryptoHornHairs) December 31, 2019
The coming several hours and days will provide significant insight into where Ethereum is heading next, and it remains highly possible that Bitcoin will end up playing a massive role in whether or not ETH revisits its key support at $125.