Markets started the week with a depreciation. The majority of cryptocurrencies lost 5-10% in the first hours of Monday. Most analysts explained this move as a rapid jerk triggered by whales. This was supported by higher levels of demand due to the highest recovery after heavy purchases at the lowest levels. For some cryptocurrencies like Ethereum (ETH), these supports have doubled as the entry points that traders can last for a long time.
Ethereum (ETH) Carries Ascension Potential
After the frustrating days just above the $ 235 support today, investors’ fears were justified because Ethereum remained below support. This decline was primarily driven by Bitcoin, which is still unstable in the long run.
Ethereum’s support came in at $ 220 before the fall of $ 225 fell. Many cryptocurrency analysts, including Crypto Michaël, say this level is great for long-term investment in digital assets.
Ethereum set a local peak at $ 250, but many believe that the asset fed by the release of Ethereum 2.0 will retest $ 300, the highest level of the year. While prices have dropped recently to $ 240, Michaël believes that with a retreat, ETH will easily rise above $ 250 and reach the $ 300 target. For this reason, the current decline could be a great opportunity, leading to the $ 250 peak and the $ 300 high level. However, as we have noted, the recent correlation between Bitcoin and Ethereum suggests that the eyes will still be on Bitcoin and will remain attached to BTC in the short term.
Bitcoin (BTC) Still Unstable
Because Ethereum and the market are still dependent on Bitcoin to determine the speed and direction, an analyst reassures investors despite the recent decline.
According to the cryptocurrency analyst Rekt, Bitcoin is still trading within its range. He also points out that no upward or downward trend will occur unless the $ 9,800 and $ 8,800 levels are broken.
The reality is this:
There's no reason to be overly bullish until Bitcoin confirms a break above ~$9800 on the Weekly
— Rekt Capital (@rektcapital) June 15, 2020
When Bitcoin fell below $ 9,000, there was enough demand to trigger a return to the current $ 9,400 levels. This suggests that there is still strong demand and a bullish trend. However, as cryptocurrency analysts have pointed out, all this is in equilibrium, prices are now closer to a downward break from the upward trend.