- Ethereum has been closely following the price movements of Bitcoin and other major altcoins, but has been able to avoid an intense drop overnight
- Although support for the cryptocurrency was only $ 530 at this level, it triggered a “V-shaped” rebound that allowed it to soar towards the upper $ 500 region
- Since then it has found some resistance in this price region, which is not too surprising given the state of the overall market
- A trader is watching closely to see if there is another move into the $ 500 region and realizes that this is likely to be a long-term low for the cryptocurrency
Ethereum’s price movement has been a bit flawed lately as the cryptocurrency has been closely tracking Bitcoin’s price movement recently.
This has caused serious downward moves in the past 24 hours as BTC’s recent phase of consolidation around $ 19,000 resulted in a bearish collapse that caused BTC to drop to $ 17,700 while ETH hit lows of $ 530.
These lows for both cryptocurrencies turned out to be short-lived as ETH has since eliminated most of its losses while BTC managed to climb back above $ 18,000.
One analyst is still forecasting a decline towards $ 500 and notes that this will likely be a long-term floor for the cryptocurrency.
Ethereum is recovering from the overnight selloff
At the time of writing, Ethereum is trading a little over 3% from its current price of $ 570. Here has been trading in the last few days.
Overnight, its price dropped to just $ 528 before finding immense buying pressure that skyrocketed towards the top $ 500 region.
Buying pressure has slowed here as the cryptocurrency finds resistance. Whether or not $ 600 can go into support should offer serious insight into the medium-term outlook.
Analysts claim that ETH Bottom is getting closer
A dealer believes Ethereum’s long-term floor price is likely to be $ 500.
This level has held up strong throughout all Bitcoin-induced sell-offs, with bulls eager to buy a decline towards or below this level.
“ETH: $ 500 potential low,” the trader explained, pointing to the graph below.
Image Courtesy of il Capo of Crypto. Source: ETHUSD on TradingView.
If that level continues to provide a strong base for support, it could ultimately help propel the cryptocurrency firmly into the $ 600 region.
Whether or not that level stays strong will likely depend largely on Bitcoin, as a sharp drop could cause serious headwinds for Ethereum as well.
Featured image from Unsplash. Charts from TradingView.