Ethereum Reaches Crucial Support Level as Market-Wide Selloff Slows

• Ethereum has seen some notable downwards momentum over the past several hours that has caused its price to erase the gains that came about during the latest leg higher
• Where it trends in the mid-term should depend largely on whether or not buyers can stop it from falling below one key price region
• This price action could continue acting as strong support in the days and weeks ahead, with one analyst calling it a “solid buy” in this region
• Bitcoin has been guiding the aggregated market, which means that its price action in the mid-term will likely control that of ETH
• Any break below the cryptocurrency’s key support level could cause ETH to see an accelerated decline towards the mid-$500 region

It has been a turbulent day for Ethereum, with the cryptocurrency showing some signs of weakness following a Bitcoin dip to lows of $22,000.

While BTC has recovered most of its losses following this decline, ETH’s price has remained quite low and shows few signs of recovering anytime soon.

Where it trends next should depend largely on whether or not buyers will be able to step up and provide ETH with any near-term momentum.

One trader is noting that Ethereum is resting just atop a key support zone that may bolster its price and allow for it to see significantly further momentum in the days and weeks ahead.

Ethereum Loses Ground Against Bitcoin as Sellers Take Control

At the time of writing, Ethereum is down just over 3% at its current price of $617. This is around the price at which it has been trading throughout the past few hours.

Overnight, the cryptocurrency’s price declined to lows of $600 before it found some major support and rallied higher.

It has been slowly climbing ever since, but its recovery has yet to match the intensity seen by that of Bitcoin.

Trader Claims ETH is Sitting Upon a Key Support Level

While sharing his thoughts on Ethereum’s price action, one trader explained that he is watching to see how the crypto continues responding to a key support region that it has been holding above as of late.

He notes that a break below this level could be dire and spark a deep retrace.

“ETH: Think green area is a solid buy. Break below and I think we’ll be accelerating towards range mean pretty fast.”

Image Courtesy of George. Source: ETHUSD on TradingView.

Unless Bitcoin plunges and created further headwinds for Ethereum, there’s a strong possibility that it will soon establish this as a bottom upon which it can grow off of.

Featured image from Unsplash.
Charts from TradingView.

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