Ethereum dip to $500 is highly likely according to this trend channel that we are going to talk about today in our ETH price news. The dip to $500 could eventually prepare Ethereum for a rally higher but let’s read more.
Ethereum saw some brutal price action over the past few weeks with the selling pressure at the $1300 region proving to be intense. It is important to note that BTC was creating many headwinds for ETH as of late with the buyers being unable to protect from a stronger decline. One trader noted that where the market trends next will most likely depend on whether the bulls can defend the $1000 level and pointed to an ascending channel saying that pivot point for ETH could soon bring the coin to $500.
As such, this could be a sign that the bears are targeting the weeks and months to come if this downtrend is more than just a short-term selloff. ETH is plummeting lower today alongside BTC and other cryptocurrencies. Bitcoin’s inability to hold above $40,000 is behind this drop and caused the entire market to see a stronger selloff. Where will ETH trend next depends on the ability of the bulls to protect against BTC and a short-term selloff. One trader noted that ETH could see a further drawback by 50% in the near-term pointing to the support which is set at the $500 region.
He noted that this level has strong importance as it seems to be a pivot level. At the time of writing, ETH is trading down under 20% with a current price of $1025 which marks a huge decline from the recent highs of $1400 that was set a few days ago. Where will the market trend next will depend on BTC as it was guiding ETH and the rest of the market in the past few weeks.
Unless BTC is able to defend the $30,000 and ETH is able to continue trading higher of $1000, there could be more downsides for both assets. One analyst explained in a tweet that Ethereum’s pivot is now sitting in the $500 region which means that it could continue trading to this level in the short-term:
“ETH PF: still using this as roadmap for Q1… looking for a dip to ML, 200-day EMA, and yearly pivot over next few months ~500-530.”
An Ethereum dip to $500 will be likely soon enough but the upcoming days should provide insights into whether or not this is a strong possibility.