Here’s Why Traders are Growing Cautious About Ethereum’s Uptrend

  • Ethereum has witnessed some incredibly mixed price action throughout the past few weeks
  • After rallying up to highs of $415, it has been struggling to recapture this momentum as it largely trades below $400
  • Yesterday, ETH bulls pushed it to this key level before facing a massive influx of selling pressure that forced it lower
  • It is now trading around its daily lows as bulls struggle to gain further momentum
  • This has led one analyst to note that further downside could be imminent in the near-term

Ethereum has seen some rocky price action over the past few days. On Saturday, bulls stepped up and sent the cryptocurrency’s price flying up towards new yearly highs of $415.

The selling pressure found here was significant and catalyzed a deep pullback that led ETH as low as $300.

Despite recovering the vast majority of these losses, the cryptocurrency is now struggling to break back above $400 as it consolidates within the upper-$300 region.

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While speaking on this topic, one cryptocurrency analyst explained that ETH’s current market structure is strikingly similar to that seen when it was trading at the bottom of its long-held range.

This may suggest that a sharp pullback is imminent in the coming days and weeks.

Ethereum Reaches Crucial Support as Analysts Watch for a Bearish Trend Shift 

At the time of writing, Ethereum is trading down just under 1% at its current price of $384. This is around the price at which it has been trading at following its overnight rejection at $400.

The cryptocurrency is currently well-below its recent highs of $415, and the downtrend the rejection here sparked is having grave implications on the crypto.

One analyst also noted that Ethereum is now at risk of seeing a trend shift, as it is trading above its final key support within the upper-$300 region.

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“ETH: Broke below the $390 level and is currently resting on final support before trend shift. If the $380-383 level is lost, I’m assuming we’ll drop towards the next level at $360-364,” he said.

Image Courtesy of Crypto Michael. Chart via TradingView.

This Pattern Might Spell Trouble for ETH 

Another structure that highlights Ethereum’s potential near-term weakness is seen while looking towards the candle formed at its $400 daily high.

One analyst is noting that this candle’s striking similarities to its range-low candle could mean a retrace is imminent.

“ETH: Some further thoughts… Similar PA, simply on different sides. Taking liquidity below the support level previously and now above the resistance level with this current move.”

Image Courtesy of Chase_NL. Chart via TradingView.

So far, the trader’s analysis has been spot-on. This means that the cryptocurrency may not be poised to move towards its range-lows at $367.

If the support here is lost, Ethereum could soon invalidate its entire uptrend.

Featured image from Unsplash.
Charts from TradingView.

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Author: Cole Petersen

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