Its recent rebound, however, may prove to be fleeting, as the crypto is now on the cusp of once again plummeting below its key psychological support at $200.
In the grand scale of things, this ongoing Ethereum selloff may actually prove to be bullish, as one prominent analyst is noting that the cryptocurrency could see an explosive rally if bulls are able to defend one key price region that lies slightly below ETH’s current price.
Analysts Eyeing Further Short-Term Downside for Ethereum Despite Slight Rebound
After plummeting towards $190 yesterday, bulls stepped up and propelled Ethereum back above $200, although this rally hasn’t been incredibly strong, as ETH is now at risk of once again dipping back below this price level.
Ethereum’s recent selloff has erased nearly all of the gains the cryptocurrency incurred in late-January and early-February, with the crypto currently trading down nearly $100 from its intra-rally highs of $290.
Despite this intense selloff, it is important to note that it is still trading up from its year-to-date lows of $125.
Crypto Michaël, a prominent cryptocurrency analyst on Twitter, explained in a recent tweet that the key zone ETH needs to break above in order for another uptrend to kick off is $212, and a failure to break above this region could catalyze significant losses.
“Ethereum: Bouncing from the $195 level here. Main key zone to break is $212-216. Doubt we’ll break it. Looks more natural for a bearish retest and dropdown after towards $170-180,” he explained.
Bouncing from the $195 level here. Main key zone to break is $212-216.
Doubt we’ll break it.
Looks more natural for a bearish retest and dropdown after towards $170-180. pic.twitter.com/1yoOddpSiL
— Crypto Michaël (@CryptoMichNL) March 10, 2020
A Visit to $140-$160 Could Spark an Explosive Parabolic Rally Up Towards $800
Bitcoin Jack, another popular cryptocurrency analyst on Twitter, explained in a recent tweet that he will be “buying all the ETH” he can once it dips to between $141 and $166, as the support in this region could lead the cryptocurrency to rally as high as $837 in the near-term.
“Truth is that I will be buying all ETH I can between $141 and $166 if it gets to it. I will then gladly sell it all back to you between $616 – $837,” he explained while pointing to the levels marked on the below chart.
Truth is that I will be buying all $ETH I can between $141 and $166 if it gets to it
I will then gladly sell it all back to you between $616 – $837 https://t.co/Ar6iRroOt7 pic.twitter.com/7aVOqHCz0E
— //Bitcoin 𝕵ack (@BTC_JackSparrow) March 10, 2020
The coming few days and weeks should provide investors with insights into just how imminent a movement to the mid-$100 region is, as any further Bitcoin bearishness will likely lead altcoins to also plummet lower.
For Ethereum, however, this potential near-term dip could prove to be highly bullish, and ultimately allow it to begin its next parabolic rally.
Featured image from Shutterstock.