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Ethereum Price Left Open For Larger Correction After Failing Key Support

05/17/2020
ethereum price left open

Ethereum price left open a position for a larger correction after the price failed to hold a key support level despite the gains over the past weeks. In today’s Ethereum news, we can see that the price of the asset is under threat by another decline.

The top cryptocurrencies such as Bitcoin and Ethereum could be still up by 100% from the March lows but the past weeks were rough for the crypto market. The prices haven’t crashed as to say but the cryptocurrencies started printing technical signs on their charts that show a downside is possible. One analyst even remarked that since Ethereum closed below the key support level and said it could be vulnerable to a larger correction of another 15% drop from the highs already seen before.

ethereum chart

According to another prominent crypto trader, Ethereum lost a key support yesterday that held four separate times over the past weeks and he said that a larger correction is coming. The Ethereum price left open a whole to fill thanks to losing the key support. Adding to the loss of support level, a lot more analysts expect all altcoins to underperform Bitcoin.

Another analyst, Josh Olszewicz observed that Bitcoin’s dominance printed a textbook signal of strength which was the golden cross. With the arrival of the golden cross, the analyst said that those who are waiting for an altcoin season should start waking up. The previous golden cross preceded massive rallies in Bitcoin against altcoins which suggested the same is about to happen again. While Ethereum could be preparing for a larger correction, a bitcoin rally could negate the trend as the altcoins start following the market.

ethereum chart

Luckily for the ETH holders, bitcoin’s technical outlook is stronger than the other altcoins. Mohit Sorout who is a partner at crypto hedge fund Bitazu Capital shared his opinion saying Bitcoin ‘’loves to paint’’ the price action. Sorout says that Bitcoin followed this scheme twice last year once before rallying to $5,000 then to $7,000. In terms of fundamentals, the House passed a $3 trillion stimulus bill but this doesn’t mean that the bill will pass the Senate or that it will be signed off by the USA president.

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