ETH got rejected at a higher timeframe resistance as the price was closely tracking the one of Bitcoin over the past few days and weeks as we reported in the latest Ethereum news.
Ethereum’s bulls and bears reached an impasse as both sides have been unable to spark sustainable trends. Where will the market trend next depends on BTC as the cryptocurrency is now trading at two critical levels. One analyst noted that ETH got rejected at a high timeframe resistance level a day ago and this rejection could cause the asset to see more downsides in the upcoming days and weeks ahead. He also believes that ETH could drop as low as $280 before it is able to garner any strong support.
Both Ethereum and Bitcoin and the rest of the crypto market were struggling to find strong momentum in either direction over the past few weeks and days. Both buyers and sellers attempted to take control of the near-term trend but their relative lack of strength led to the formation of a wide trading range for most of the cryptocurrencies. ETH could be poised for an extension in the bearish trendline seen over the past few days and weeks. Overnight it faced a strong rejection at the high time frame resistance which opened the gates for more downsides with one trader noting that a move towards the bedrock support at $280 will be imminent.
At the time of writing, Ethereum is trading down marginally at a price of $355 while overnight the cryptocurrency hit highs of $365 before facing a rejection. The level does mark a key near-term resistance as the bulls were able to defend against a drop beneath $250 but they are signaling that they still have power which could boost the cryptocurrency higher in the near-term. One trader even believes that ETH is poised to drop towards $280 in the near-term as he explained that this will mark a long-term bottom. He said, unless ETH manages to rebound and goes over $360 resistance level, there’s a strong chance that a downside will happen:
“ETH at HTF resistance and trying to close today above DTL. Still personally am hoping market gives $280 for final buys of the year.”