Ethereum (ETH) has been facing bearish price action over the past several days and weeks, which comes about concurrently with a recent and ongoing Bitcoin recovery that has allowed BTC to put significant distance between its current price and its recent lows.
Ethereum’s bearishness may have been perpetuated by a violent rejection at a key multi-year resistance trendline that has been suppressing its price action for the past two years, with the strength of this resistance leading analysts to predict that ETH could soon drop another 35%.
Ethereum Inches Lower as Bull’s Recovery Attempt Falters
At the time of writing, Ethereum is trading down just under 1% at its current price of $127, which marks a notable retrace from its weekly highs of $134 that were set at the peak of the recent relief rally incurred by the cryptocurrency.
This relief rally came about after ETH tapped lows of $120 earlier this past week, which has since shown signs of faltering.
In the time since this rally – and subsequent retrace – Ethereum has been caught in a firm bout of sideways trading around its current price levels, which may signal that a big movement is imminent.
The next major movement seen by ETH and other major altcoins will likely come about as a result of Bitcoin making a major movement, as the entire markets have grown closely correlated with BTC in recent times.
ETH May Soon See 35% Pullback Despite Recent Bounce
Although Ethereum was able to find significant support at $120, the crypto has been stuck beneath a strong multi-year resistance level that may continue to guide it lower.
Teddy, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he is targeting a 35% pullback for ETH’s BTC trading pair, which comes shortly after a lackluster Istanbul hard fork.
“#ETHEREUM | $ETH: Istanbul, the hardfork clearly failed to generate a new wave of interest – as if the average Joe could give two flying forks about it – Diagonal resistance imposed 2 years ago? not a scratch – Previous dotted support? now resistance – COME TO DADDY,” he explained while pointing to the chart seen below.
Istanbul, the hardfork clearly failed to generate a new wave of interest – as if the average Joe could give two flying forks about it 🌈
– Diagonal resistance imposed 2 years ago? not a scratch
– Previous dotted support? now resistance
COME TO DADDY 🍴 pic.twitter.com/bxiIj1BNNJ
— TEDDY ⛓️📉 (@teddycleps) December 21, 2019
If Bitcoin begins extending its recently found upwards momentum, it is probable that Ethereum will follow suit, but any further BTC weakness could validate Teddy’s bearish assessment and mean that significantly further losses are imminent.
Featured image from Shutterstock.