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Here’s the Crucial Level Ethereum Needs to Break to Avoid Cratering Lower

  • Ethereum has been moving in close tandem with Bitcoin over the past couple of days

  • This has made it exposed to seeing intense downside, and it is now stuck beneath the $240 region

  • ETH is now at risk of setting lower lows according to one analyst, but there is a way bulls can stop this from happening

  • The trader noted that $242 is a key high time frame level that bulls must flip before tomorrow’s weekly candle close takes place

  • A failure to do so could be grim
Ethereum has been struggling to recapture the $240 region following its latest selloff. This decline came about in tandem with that seen by Bitcoin, which was rejected at $9,500 earlier this week.
BTC now appears to be entering another consolidation phase as it trades around $9,200, and this could either provide a backdrop for altcoins to run against or could cause ETH and its peers to continue trading sideways.
In the near-term, how the cryptocurrency trends could be largely determined by its reaction to one crucial level prior to its weekly candle close tomorrow.
One trader believes that this level sits at $242, and a failure to close above it could put Ethereum at risk of setting lower lows.
[b]Ethereum Declines Beneath $240 as Market-Wide Momentum Slows[/b]
At the time of writing, Ethereum is trading down just under 1% at its current price of $239. This is around the price at which it has been trading throughout the past day.
Following ETH’s rejection at $250 that caused it to slide lower in tandem with Bitcoin, it has been establishing a trading range between $236 and $242.
The resistance at $242 appears to be slowly shifting lower, as it has been struggling to surmount $240 over the past day.
One analyst recently stated that it is imperative for Bitcoin’s buyers to catalyze a sharp movement that sends the cryptocurrency past $242 this weekend.
He explained that a close above this level could send it up towards $370, whereas a rejection here could cause it to reel lower.
Quote:“ETH HTF Update: Price really needs to flip $242 on the weekly level,” he said.
[Image: Cactus-980x517.png]
Image Courtesy of Cactus. Chart via TradingView.
[b]ETH Could Be on the Cusp of Setting Lower Lows[/b][b] [/b]
As Bitcoinist reported yesterday, the analyst also mused the possibility that Ethereum could soon plunge lower if it breaks below $238.
Quote:“ETH HTF Update: Currently PA is testing $238 which previously was a strong level of resistance… this is super critical for bulls to hold. If we break down from here likely we see a lower low,” he said.
[Image: CactusETHUSD-980x512.png]
Image Courtesy of Cactus. Chart via TradingView.
How Ethereum responds to its support at $238 and its resistance at $242 heading into the weekly close should set the tone for the week ahead.
Featured image from Shutterstock.
Charts via TradingView.