{"id":108136,"date":"2021-01-12T09:51:45","date_gmt":"2021-01-12T09:51:45","guid":{"rendered":"https:\/\/precoinnews.com\/?p=108136"},"modified":"2021-01-12T09:51:45","modified_gmt":"2021-01-12T09:51:45","slug":"this-trend-channel-suggests-ethereum-could-dip-to-500-before-rallying-higher","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/altcoins\/this-trend-channel-suggests-ethereum-could-dip-to-500-before-rallying-higher\/","title":{"rendered":"This Trend Channel Suggests Ethereum Could Dip to $500 Before Rallying Higher"},"content":{"rendered":"
Ethereum is plummeting lower today alongside Bitcoin and virtually all other cryptocurrencies. BTC\u2019s inability to hold above $40,000 is behind this decline and has caused the entire market to see some intense selloffs.<\/p>\n
Where ETH trends next will undoubtedly depend on whether or not bulls can guard against Bitcoin seeing any intense short-term selloff.<\/p>\n
One trader is now noting that Ethereum could see a further 50% drawback in the near-term, pointing to the support that exists in the $500 region.<\/p>\n
He also notes that this level has technical significance, as it happens to be a yearly pivot level.<\/p>\n
At the time of writing, Ethereum is trading down just under 20% at its current price of $1,025. This marks a massive decline from recent highs of $1,400 set just a couple of days ago.<\/p>\n
Where the market trends next will undoubtedly depend on Bitcoin, as it has been guiding ETH and most other altcoins throughout the past few days and weeks.<\/p>\n
Unless BTC can defend $30,000 and ETH can continue trading above $1,000, there may be further downside in store for both assets.<\/p>\n
One analyst explained in a recent tweet that Ethereum\u2019s yearly pivot currently sits within the $500 region, which means that it may continue trending down towards this level in the short-term.<\/p>\n
\n\u201cETH PF: still using this as roadmap for Q1\u2026 looking for a dip to ML, 200-day EMA, and yearly pivot over next few months ~500-530.\u201d<\/p>\n<\/blockquote>\n
<\/p>\n
Image Courtesy of Josh Olszewicz. Source: ETHUSD on TradingView.<\/pre>\nThe coming few days should provide insights into whether or not this is a realistic possibility for Ethereum and shine some light on how Bitcoin will trend in the mid-term.<\/p>\n
Featured image from Unsplash.\nCharts from TradingView<\/pre>\n