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Analysts are fearful that Ethereum could drop under $300 despite strength in Bitcoin and legacy markets.
Related Reading: This European Crypto Exchange Was Just Hacked for $5 Million
Ethereum Could Move Under $300, Analysts Fear: Here’s Why
Ethereum is risking a drop under $300 due to it reaching a pivotal resistance region in the $380 region. One analyst commented on the matter:
“$ETH is likely headed to the top of this channel here at $400 and from there comes the moment of truth. I favor the RED path, but a HTF close above the RED region would force me to flip bullish. This is going to get interesting.”
Chart of ETH's price action over the past few years with analysis by crypto trader Credible Crypto. Chart from TradingView.com
The aforementioned analyst isn’t the only one that fears Ethereum could soon slip under $300.
Related Reading: Here’s Why This Crypto CEO Thinks BTC Soon Hits $15,000
One trader noted that ETH’s recent price action on its daily chart looks bearish as the asset has formed a rejection. This could trigger a drop towards $240, similar to the aforementioned target. Commenting on the potential of this scenario playing out, this trader remarked:
“Actually just going to pitch straight for $240 as the target for $ETH. Rejection looking rough still on the Daily, nothing that’s changed the trade or the plan.”
Chart of ETH's price action over the past few years with analysis by crypto trader Cold Blooded Shiller (@ColdBloodShill on Twitter). Chart from TradingView.com
ETH Weakness Could Crush Altcoins
Weakness in the price of ETH could crush altcoins, especially DeFi coins.
One top Bitcoin trader on BitMEX noted that ETH falling under $350 could trigger “another -25% day” across the board for DeFi tokens, which is a phenomenon last seen earlier this month:
“Super important Level for $ETH: Currently $ETH and it’s ERC20 minions seem to be leading the market, would not be surprised to see another -25% day across the board for #DeFi tokens if $ETH trades under 350.”
Chart of ETH's price action over the past few weeks with analyis by crypto trader Flood (@ThinkingUSD on Twitter). Chart from TradingView.com
Over recent weeks, whenever ETH has slipped, altcoins have plunged. It appears that analysts see weakness in the price of ETH as a sign of bad things to come for altcoins, especially those based on the Ethereum network.
Related Reading: It’s “Logical” for Ethereum To Reject At Current Prices: Here’s Why
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com This Pivotal Level Could Trigger an Ethereum Correction Under $300
