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Traders warn that ETH price could fall to $1,700, triggering a “turbo nuke” in altcoins and altering the market structure of a struggling bull market.
MARKET UPDATE
Bitcoin (BTC) and Ether (ETH) price are still being hard hit by the current wave of volatility and this is leading traders to go back to the drawing board and readjust their short-term expectations. On Feb.17, Bitcoin price briefly dipped below $40,000 and Ether failed to hold support at $2,900, raises the chance of a drop to $2,500.
Data from Cointelegraph Markets Pro and TradingView shows that after hovering near the $2,900 support level through the morning trading hours, Ether was hit with a wave of selling that dropped it to an intraday low of $2,752.
ETH/USDT 1-day chart. Source: TradingView
Here’s a look at what analysts are saying about the price drop for Ether and whether or not more downside is expected as global tensions continue to rise.
A general overview of the current outlook for Ether was provided by crypto trader and pseudonymous Twitter user ‘Crypto Tony’, who posted the following chart discussing the areas of support and resistance to keep an eye on.
ETH/USD 1-day chart. Source: Twitter
Crypto Tony said,
“$3,900 remains the most pivotal area for me and if we flip that, well I believe the low is in... Reject from it or fail to even reach it and we head to my main target of $1,700.”
A more bullish take on Friday’s price action was offered by market analyst and pseudonymous Twitter user ‘IncomeSharks’, who posted the following chart indicating that Ether is now at a significant resistance zone.
ETH/USD 4-hour chart. Source: Twitter
According to the analyst,
“Ether right at the supertrend resistance. Since it's flat it usually has a higher chance of breaking upwards and flipping bullish. If it does flip bullish I think $2,900 to $3,000 would be next.”
Related: U.S. inflation breaks 40-year record: Can Bitcoin serve as a hedge asset?
Insight into what could happen to Ether and the wider altcoin market, should it fail to hold this current level, was offered by trader and pseudonymous Twitter user Pentoshi.
ETH/USD 1-day chart. Source: Twitter
Pentoshi said,
“I will take note that there is local strength here since it held its lows but overall still lower highs. Trend is down. *IF* those lows break *THEN* *MOST* altcoins turbo nuke.”
The overall cryptocurrency market cap now stands at $1.899 trillion and Bitcoin’s dominance rate is 41.4%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
