Ethereum’s price saw a rapid surge earlier this morning that sent it to highs of $396 before it faced a massive influx of selling pressure that caused it to nearly instantly reverse all of its recent gains.
This movement came about in tandem with a similar one seen by Bitcoin, which was able to push as high as $11,600 before it lost its strength and plunged lower.
ETH now appears to be at a make or break level as it trades just below a crucial resistance level and above key support.
Which one of these levels is broken first should provide significant insight into its near-term trend.
Because the entire market is facing heightened selling pressure following the recent rejection, there’s a chance that the next movement will greatly favor sellers.
Ethereum Shows Signs of Weakness Following Early-Morning Rejection
At the time of writing, Ethereum is trading down just under 1% at its current price of $384. This is around the price at which it has been trading throughout the past several days.
It is important to note that buyers are attempting to guard against further losses following the intense rejection it posted earlier today.
This rejection came about when Bitcoin rallied up to highs of $11,600, which created a tailwind that guided ETH to $396.
Almost immediately after these highs were reached, the crypto plunged down to lows of $380, before it stabilized around its current price level.
This turbulence struck a blow to the cryptocurrency’s market structure and seems to indicate that further downside could be imminent in the near-term.
Because Ethereum and BTC are closely correlated to one another at the present moment, where ETH trends next will likely depend on whether or not the benchmark cryptocurrency can guard against a decline below $11,300.
It Is a Critical Moment for ETH as It Trades Between Crucial Levels
While speaking about Ethereum’s market structure in the aftermath of today’s turbulence, one analyst explained that $378 and $390 are the crucial levels to watch in the near-term.
“ETH / USD: Literally just watching to see which level breaks first, either we see $390 reclaimed soon or $378 is going to be broken and we see further downside to around $365 region…”
Image Courtesy of Cactus. Chart via TradingView.
The coming few days should offer insights into the state of the mid-term uptrend that has guided Ethereum higher throughout the past couple of months.
Any breakdown from here will likely come about as a result of Bitcoin being unable to stabilize above the lower-$11,000 region.
Featured image from Unsplash. Charts from TradingView.