Ethereum, much like Bitcoin and the rest of the crypto market, has seen significant buy-side pressure throughout the past couple of weeks that has allowed it to post some massive gains.
Its uptrend reached a boiling point last night when buyers sent its price rocketing up to highs of nearly $500 before it faced a massive influx of selling pressure that caused it to see one of the most intense price declines seen in ages.
This decline caused it to reel from $495 to lows of $440 on many trading platforms, marking an over 10% decline in a mere matter of minutes.
Where the cryptocurrency trends in the mid-term may depend largely on whether or not buyers can hold its price above $470, as the rebound from its lows has so far been a “V-shaped” recovery.
Any decline from here could invalidate the strength resulting from this pattern.
One trader offers a bullish outlook on the cryptocurrency, noting that he is closely watching for a break above $495 in the mid-term.
He says that past this level is open skies for the cryptocurrency and that it could soon see a move towards $800 if it posts a strong and sustained move above this level.
Ethereum Sees Sharp Selloff Alongside Aggregated Crypto Market
Yesterday, Ethereum, Bitcoin, and altcoins all saw a mass selloff in tandem after ETH rallied to highs of $495 and BTC tapped $18,600. It appears that this last leg up marked an overextension of the market-wide uptrend.
At the time of writing, ETH is trading down marginally at its current price of $473. This is around where it has been trading throughout the past few days.
If it can continue holding above this level, it could soon see some further momentum and incur a more sustainable push higher. A decline here, however, could put its firmly bullish market structure in jeopardy.
Why One Trader is Eyeing an ETH Move to $800
One trader believes that Ethereum could be on the cusp of seeing a move towards $800 in the near-term.
For this to take place, the crypto must firmly shatter the resistance that sits around $495.
“ETH is clearing a major resistance and there’s literally nothing after that until $800,” he said while pointing to the below chart.
Image Courtesy of @SmartContracter. Source: ETHUSD on TradingView.
Bitcoin is guiding Ethereum’s price action at the present moment, so where the crypto trends in the short-term should depend largely on BTC and its reaction to $18,000.
Featured image from Unsplash. Charts from TradingView.