Ethereum, much like Bitcoin and the rest of the crypto market, has seen significant buying pressure in the past few weeks that has enabled it to make some massive profits.
Its uptrend reached a boiling point last night as buyers pushed its price to a high of nearly $ 500 before facing a massive surge in selling pressure that resulted in one of the most intense price declines in years.
That drop resulted in a drop from $ 495 to lows of $ 440 on many trading platforms, representing a drop of over 10% in a matter of minutes.
Where cryptocurrency trends over the medium term may largely depend on whether or not buyers can keep their price above $ 470 as the rebound from their lows so far has been a “V-shaped” rebound.
Any decline from here could invalidate the strength resulting from this pattern.
A trader offers an optimistic outlook on the cryptocurrency and notes that he is paying close attention to a break above $ 495 in the medium term.
He says that beyond this level there is an open sky for the cryptocurrency and that there could be a move towards USD 800 soon if it sees strong and sustained move above this level.
Ethereum sees sharp sell-off alongside the aggregated crypto market
Yesterday, Ethereum, Bitcoin and Altcoins saw a mass sell-off in tandem after ETH rose to highs of $ 495 and BTC hit $ 18,600. It seems that this last leg was an overstretching of the market-wide uptrend.
At the time of writing, ETH is trading marginally at its current price of $ 473. Here has been traded in the last few days.
If it can continue to stay above that level, it could see more momentum soon and see a more sustained rise. However, a decline here could endanger the firmly bullish market structure.
Why a trader is considering an ETH move to $ 800
A dealer believes that Ethereum could be on the verge of seeing a move towards $ 800 in the short term.
For this to happen, the crypto must firmly destroy the resistance, which is at $ 495.
“ETH clears a lot of resistance and after that there is literally nothing up to $ 800,” he said, pointing to the following graph.
Image Courtesy of @SmartContracter. Source: ETHUSD on TradingView.
Bitcoin is currently driving the price action of Ethereum, so short-term crypto trends should largely depend on BTC and its reaction to $ 18,000.
Featured image from Unsplash. Charts from TradingView.