Ethereum has declined over the past 24 hours alongside Bitcoin and the aggregated cryptocurrency market. Despite flashing some signs of strength in recent times, this has not been enough to break its tight correlation with BTC.
Analysts do believe that the cryptocurrency is now positioning itself to post a massive upwards breakout in the days and weeks ahead.
This potential movement could be sparked by the heavy support that exists just below where it is currently trading at.
That being said, some analysts aren’t convinced that this support will hold upon another retest, and a break below it could prove to be dire for the cryptocurrency’s mid-term outlook.
Ethereum Plunges Below Long-Held Trading Range as Support Evaporates
At the time of writing, Ethereum is trading down over 3% at its current price of $227. This is around the price at which the cryptocurrency has been trading at for the past several days and weeks.
The latest decline seen by ETH has caused it to also shed 2% of its value against Bitcoin, with this decline putting an end to the outperformance it has been posting against BTC in recent times.
Today’s decline also marked an end to the multi-week consolidation phase that ETH had been caught within between $230 and $250. The longer it remains below the lower boundary of this previous range, the weaker it will likely become.
In the near-term, where Bitcoin trends will likely play a huge role in determining where the entire altcoin market goes next.
Because Bitcoin’s buyers have posted an ardent defense of $9,000 and is now navigating towards the mid-$9,000 region, it is a possibility that altcoins like ETH will also be able to recapture their previous trading ranges.
One analyst recently explained that he still anticipates ETH to descend towards $200 in the near-term. This level must be ardently defended by buyers, or else it could be in jeopardy of posting significantly greater losses.
“ETH / USD H4 TF – A lot more sideways PA than expected, I am short again looking for another touch of this ascending channel.”
Analyst: Defense of $200 Could Spark Intense Rally to $300
Another respected pseudonymous trader recently emphasized the importance of the $200 region, explaining that he believes that this is the level the crypto will visit before kicking off its next intense uptrend.
He notes that this could trigger a rally that leads Ethereum up towards $300.
“Buying the dip has been the way to go for the past 3 months. Nothing has changed so far. Getting ETH low $200s and aiming for $300,” he explained.
Featured image from Shutterstock. Charts from TradingView.
