Ethereum caught some notable upwards momentum earlier today that has led it up towards the $180 region
This momentum has led it towards a key descending trendline that could spark a brutal rejection
ETH also faces some intense horizontal resistance just a hair above its current price
Ethereum and the aggregated cryptocurrency market is currently caught within a firm upswing that has allowed Bitcoin to surmount $7,000 while ETH and most of its other peers all post notable gains.
This newly found momentum comes close on the heels of a bout of weakness seen by virtually all major cryptocurrencies and could lead to another retest of their previously formed resistance levels.
One factor that could force Ethereum to see a dire price decline is a strong descending trendline that it is about to test, which closely coincides with a strong horizontal resistance region.
Ethereum Approaches Heavy Resistance as Analysts Watch for a Rejection
At the time of writing, Ethereum is trading up just under 4% at its current price of $178.83, marking a notable climb from daily lows of $171.
This movement comes as Bitcoin attempts to recapture its position above $7,000 and suggests that both BTC and all other major altcoins are bound to retest their recently established resistance levels.
In the case of Ethereum, this horizontal resistance appears to exist between $182 and $184. If the crypto does face a firm rejection here, it could quickly decline to lower lows.
One pseudonymous trader recently took to Twitter to muse this short-term resistance level, offering a chart showing that he anticipates the crypto to face a stern rejection at this price region that leads it significantly lower.
Image Courtesy of Mac
Key ETH Trendline Test Fast Approaches
Another technical factor that could lead Ethereum lower in the days and weeks ahead is a descending trendline that it has formed throughout the past week.
One analyst recently pointed to this trendline in a recent tweet, showing that it exists just a hair beneath the aforementioned horizontal resistance.
“ETH update: Taking longer than initially expected… Got my first initial short fill here, but most of my orders are around 180 (.618). Perhaps a fake out above downtrend line then down,” he stated while pointing to the below chart.
Image Courtesy of Chase_NL
Unless Bitcoin rallies past the resistance it has established within the lower-$7,000 region, it is highly probable that Ethereum will struggle to break above these levels, with the selling pressure here potentially catalyzing a far-reaching selloff.
Featured image from Unsplash.
Source: Bitcoinist News