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Ethereum Gets Weaker As Analysts Await Major Downside

09/22/2020

Ethereum gets weaker, trading below the $380 price level as breaking it will cause many analysts to flip bullish on the second-biggest cryptocurrency. in our latest ethereum price news, we are looking into the analysis some more.

With the weekly candle close fast approaching, the bears seem to be regaining control over the near-term outlook. There’s a high chance that this will cause more near-term downsides striking a huge blow to the macro market structure. One analyst even expects that Ethereum as well as Bitcoin will see more weakness in the near-term noting that there’s a high likelihood of a downside.

Ethereum gets weaker as it tried to boost the market structure in the past few weeks with the bulls posting a defense of the $320 lows. After rebounding, the cryptocurrency broke above $380. The break above this level was of extreme significance and it only enhanced the market structure. With all that being said, analysts are noting that where the trend could go next may depend on whether or not ETH can recapture the level before the weekly candle close. Unless the bulls catalyze some of the intense near-term momenta, it will seem as the downside is imminent.

eth chart
Image Courtesy of Chase_NL. Chart via TradingView.

Ethereum is struggling to find any significant support as the price trades below $370 while the bears are attempting to push it below the crucial level. The importance of the recent selloff should not go understated because the break below this shows underlying weakness among the buyers in crypto markets. Unless ETH reclaims this level in the upcoming few hours, it will post a weak weekly close which will lead to further downsides.

Speaking about the market’s near-term, one analyst even said that he truly believes both Bitcoin and Ethereum are in a position for even more weakness in the near term as it also can be seen from the charts on the internet. He believes that the current sentiment will only result in losses that create a headwind for the smaller-cap altcoins:

 “ETH update – No longer on the verge. ETH and BTC not looking to hot atm, potentially more downside to come. I’ve reduced risk on altcoin positions.”

If both the biggest cryptocurrency and Ethereum drop further in the near-term, it will send shockwaves over the market which will bring more damage in the mid-term strength that most of the altcons are seeing.