- Ethereum has been closely monitoring the price action of Bitcoin and other major altcoins, but it has managed to see an intense drop overnight.
- Although it fell as low as USD 530, the cryptocurrency’s support at this level led to a “V-shaped” recovery that allowed it to move towards the upper USD 500 area.
- It has since found some resistance around this price region, which is not too surprising given the state of the general market
- A trader looks closely at another leg to the $ 500 region, noting that this will likely prove to be a long-term bottom for the cryptocurrency
Ethereum’s price promotion has been a bit lackluster lately, with the cryptocurrency closely monitoring Bitcoin’s price action lately.
This has exposed it to a serious downside for the past 24 hours as the recent consolidation phase seen by BTC around USD 19,000 resulted in a bearish breakdown that drove BTC down to USD 17,700 as ETH hit lows of USD 530.
These lows for both cryptocurrencies proved to be short-lived as ETH has since cleared most of its losses as BTC managed to climb above USD 18,000 again.
An analyst is still predicting a drop to $ 500, noting that this will likely prove to be a long-term bottom for the cryptocurrency.
Ethereum is recovering after overnight sell-off
At the moment of writing, Ethereum is trading just over 3% at the current price of $ 570. This is roughly where it has been trading for the past few days.
Overnight, the price fell to $ 528 before finding immense buying pressure that pushed it to the top $ 500 region.
Buying pressure has eased here as the cryptocurrency is starting to find some resistance. Whether or not it can turn $ 600 into support should provide serious insights into the medium-term outlook.
Analysts claim the bottom of ETH is approaching
A merchant believes that Ethereum’s price floor is likely to be $ 500 in the long run.
This level has held up throughout all Bitcoin-induced sell-offs, with bulls fervently buying a dip to or below this level.
“ETH: $ 500 potential bottom,” explained the trader while pointing to the chart below.
Image Courtesy of il Capo of Crypto. Source: ETHUSD on TradingView.
If this level remains on a strong support base, it could ultimately help propel the cryptocurrency firmly into the USD 600 region.
Whether or not this level remains strong probably depends largely on Bitcoinas any intense decline could cause serious headwinds for Ethereum as well.
Featured image from Unsplash. Charts from TradingView.