Ethereum and the entire crypto market have encountered some weaknesses in the past few days. It is worth noting that although both BTC and ETH are trading well above their recent lows, the bears are in the process of reversing last night’s gains.
Since the cryptocurrency is unable to translate a key resistance level into support, this bearish trend could signal a retracement trend for ETH.
An analyst named Cactus describes this as a “vital point”.
In the medium term, Ethereum trends will undoubtedly depend on Bitcoin and its reaction to support in the sub $ 30,000 region.
Ethereum has been in decline all morning along with Bitcoin. The leading cryptocurrency market saw a recovery last night. But the selling pressure proved too much for the bulls to handle.
BTC was rejected in the middle of $ 36,000, while Ethereum rejected $ 1,160. This has caused most altcoins to fall consecutively as well.
In cases where ETH trends in the near term should be heavily dependent on BTC and the rest of the crypto market, failure to convert a key resistance level to support could cause the price to deteriorate further.
Ethereum is trading at the current $ 1,060 price level. This marks a notable decline from its recent overnight high of $ 1,160.
The inability of the cryptocurrency to gain momentum is revealed as Bitcoin faces a similar dilemma.
ETH at key resistance
Ethereum reached a “vital” level during its overnight recovery when it touched the $ 1,160, which an analyst expressed as support.
The rejection here was brutal and has seen a serious decline ever since.
Where Ethereum trends will undoubtedly be heavily dependent on Bitcoin, any massive sale of BTC could cause ETH to drop below $ 1,000 once again and see a deeper decline.