In the time following its retrace from these highs, bulls were able to support the cryptocurrency and absorb the intense selling pressure that ETH was facing, allowing it to dodge much of the losses that Bitcoin and other major altcoins were subjected to.
Despite this, the crypto is now showing signs of weakness, and one analyst is noting that it could soon see its first major selloff of 2020 if it breaks below one key support level.
Ethereum Plummets 6% as Bears Begin Gaining Control Over ETH
At the time of writing, Ethereum is trading down 6% at its current price of $252, which marks a notable decline from daily highs of $270.
ETH’s current downtrend is coming about in tandem with the price declines seen by Bitcoin and most other major cryptocurrencies, and the aggregated crypto market appears to be teetering on the edge of a precipice.
The ongoing selloff has also led Ethereum to underperform Bitcoin, as it is currently trading down 3% against its BTC trading pair.
Jonny Moe – a well-respected crypto trader – spoke about Ethereum’s BTC trading pair in a recent tweet, noting that it “looks like ETH wants to break down.”
“With the way the ETH/BTC pair is shaping up, it sure looks like ETH wants to break down.”
With the way the $ETHBTC pair is shaping up, it sure looks like $ETH wants to break down. pic.twitter.com/xpkZYwMkb2
— Jonny Moe (@JonnyMoeTrades) February 25, 2020
If its ongoing break below the level seen on the above chart is sustained, it is possible that its strong uptrend could be nullified, and that further downside may be imminent.
ETH Could Plummet to Lower-$200 Region as it Breaks Critical Support
It is also important to note that Ethereum is about to post a strong break below a critical support level at roughly $250 that has been supporting its price, with a sustained movement below this level being a catalyst for a “heavy selloff.”
“ETH vs USD update >Tapped in to $275-280 resistance >At diagonal support >If lost, I expect a heavy sell-off >$241 first support >$208-211 remains valid if $241 is lost,” Bitcoin Jack, another popular analyst, explained in a recent tweet.
$ETH vs USD update
>Tapped in to $275-280 resistance>At diagonal support>If lost, I expect a heavy sell-off>$241 first support>$208-211 remains valid if $241 is lost pic.twitter.com/Rmu2o59Gra
— //Bitcoin 𝕵ack (@BTC_JackSparrow) February 25, 2020
How Ethereum trends in the near-term will likely be dependent on whether or not Bitcoin continues dropping lower, but any further downside could prove to be grave for Ethereum’s bulls.
Featured image from Shutterstock.