October 2, 2022

This Trend Channel Suggests Ethereum Could Dip to $500 Before Rallying Higher

2 min read
  • Ethereum has seen some ruthless cost action throughout the past few days and weeks, with the selling pressure seen in the $1,300 area showing to be rather extreme
  • It is essential to keep in mind that Bitcoin has actually been developing enormous headwinds for Ethereum since late, with purchasers being not able to guard against an extreme decrease
  • One trader is now keeping in mind that where the marketplace trends next will likely depend upon whether bulls can safeguard $1,000
  • Another analyst is pointing to a huge rising channel, keeping in mind that the pivot point that ETH may quickly check out presently sits around $500
  • As such, this may be a level that bears target in the weeks and months to come, must this downtrend be more than just a short-term selloff

Ethereum is plunging lower today together with Bitcoin and practically all other cryptocurrencies. BTC’s inability to hold above $40,000 is behind this decline and has caused the entire market to see some extreme selloffs.

Where ETH trends next will undoubtedly depend on whether bulls can defend against Bitcoin seeing any extreme short-term selloff.

One trader is now noting that Ethereum could see a more 50% drawback in the near-term, pointing to the support that exists in the $500 area.

He also notes that this level has technical significance, as it occurs to be a yearly pivot level.

Bitcoin Drags Market Lower: Ethereum Struggles to Hold $1,000

At the time of writing, Ethereum is trading down just under 20% at its current cost of $1,025. This marks a massive decrease from recent highs of $1,400 set just a number of days back.

Where the market trends next will unquestionably depend on Bitcoin, as it has been directing ETH and most other altcoins throughout the previous couple of days and weeks.

Unless BTC can protect $30,000 and ETH can continue trading above $1,000, there may be additional drawback in shop for both assets.

Expert: ETH Could Soon go to “Yearly Pivot” at $500One analyst described in a recent tweet that Ethereum’s annual pivot currently sits within the$500 region, which suggests that it may continue trending down towards this level in the short-term.”ETH PF: still utilizing this as roadmap for Q1 …

looking for a dip to ML, 200-day EMA, and annual pivot over next few months ~ 500-530.” Image Courtesy of Josh Olszewicz. Source: ETHUSD on TradingView. The coming couple of days ought to offer insights into whether or not this is a reasonable possibility for Ethereum and

shine some light on how Bitcoin will trend in the mid-term. Featured image from Unsplash. Charts from TradingView