Ethereum bulls launched a strong recovery after the coin saw a strong selloff overnight that led the price to new lows of $585. This is around the same price level where the cryptocurrency was able to find some support that eventually ended up looking as a V-shaped recovery as we can see in our latest Ethereum news today.
Where will it trend in the mid-term depends on the follow-through of this recovery as the strong rebound from here being able to confirm that these lows will mark a long-term bottom. Rejections at $620 which was a resistance level over the past few days, could temper the technical strength and one analyst also noted that the overnight decline puts the crypto in a precarious position with ETH invalidating the bull trend.
Bitcoin and Ethereum have both seen some rocky price action lately but the coin seems to be more subjected to seeing moves lower with the traders seeing it as a higher beta asset. Overnight, it caused it to drop below $600 reaching new lows of $585 before the bulls stepped up and ended the selloff. Since then, it recovered virtually all of the losses and is now targeting a break above the $260 resistance. One analyst noted that the drop overnight placed Ethereum in a precarious position but this is not a concern.
At the time of writing, ETH is trading up at under 2% at a current price of $617 this is around the price at which it was trading over the past few days. overnight, the price dropped as low as $585 before the buyers stepped in and slowed the drop. The strength seems to show that further upside could be imminent in the days ahead. ETH faces some resistance at the $620 level that could prove hard for it to surpass in the near-term.
One analyst explained in a tweet during the huge Ethereum selloff that the crypto’s bull trend was close to being overdue of the intensity of the decline. The fact that the bulls are pushing the price higher right after the break of $600 happened, shows that they are in control of the price action:
“4h ETH: bad news: bull trend over… good news: next entry should be fairly obvious.”
The Ethereum bulls launched the strong recovery but Bitcoin is still guiding the market which makes the price action vital for the second-biggest cryptocurrency.