Ethereum Taps Key Resistance as Analysts Watch for Rebound to Falter

• Ethereum has posted a strong rebound from its recent lows, with bulls pushing the cryptocurrency up to highs of $360 earlier today
• This upswing proved to be short-lived, and the cryptocurrency has since been rejected at this level
• Nonetheless, today’s price action has signaled that ETH’s sub-$320 lows may ultimately mark a long-term bottom that is followed by further upside
• While speaking about this, one analyst explained that although today’s rebound has been strong, it has led Ethereum into a massive resistance region

Ethereum and the aggregated crypto market have seen some slightly positive price action today, with ETH’s intense selloff yesterday coming to an end around $315, which is where buyers stepped up and catalyzed a sharp rebound.

This rebound proved to be somewhat short-lived, however, as it sent ETH to highs of $360 before it faced insurmountable resistance that sparked a rejection.

One analyst, while speaking about this rejection, explained that he is expecting the cryptocurrency’s downtrend to continue in the near-term due to the insurmountable nature of the selling pressure between $350 and $360.

Ethereum Shows Signs of Weakness Following Intense Rally to $360 

At the time of writing, Ethereum is trading up just under 3% at its current price of $343, which marks a notable upswing from recent lows of $315 that were set yesterday.

The dip to these lows came about in the absence of any intense Bitcoin selloff, as the benchmark cryptocurrency had primarily been ranging between $9,900 and $10,200 throughout the day.

ETH was clearly oversold at this point, which was reflected in the sharp surge it saw up to highs of $360 earlier this morning.

It did face a rejection here, which subsequently led it down to lows of $335 before it kicked off what appears to be a consolidation phase.

Analyst: This Key Resistance is Likely to Remain Insurmountable in the Near-Term

While speaking about Ethereum’s recent price action, one analyst explained that a continued bout of trading below the resistance at $350 would likely cause it to see continued weakness.

“ETH: I personally have us at resistance here. Flip this level & I’ll be more inclined to look at short-term longs. This level served as consolidation for the major up move to $418 then served as support 3 times since. This is now ETH’s 2nd attempt at it serving as resistance.”

Image Courtesy of Chase_NL. Chart via TradingView.

The coming few days should provide insight into the long-term importance of this level, and as to whether or not it will continue suppressing its mid-term price action.

Featured image from Unsplash.
Charts from TradingView.

 

source: https://bitcoinist.com/ethereum-taps-key-resistance-as-analysts-watch-for-rebound-to-falter/?utm_source=rss&utm_medium=rss&utm_campaign=ethereum-taps-key-resistance-as-analysts-watch-for-rebound-to-falter

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