Ethereum has seen a slight rebound today alongside Bitcoin and most other major altcoins, with ETH recapturing 0 following a period of intense selling pressure that led it to plummet as low as 0 yesterday.
Its recent rebound, however, may prove to be fleeting, as the crypto is now on the cusp of once again plummeting below its key psychological support at 0.
In the grand scale of things, this ongoing Ethereum selloff may actually prove to be bullish, as one prominent analyst is noting that the cryptocurrency could see an explosive rally if bulls are able to defend one key price region that lies slightly below ETH’s current price.
Analysts Eyeing Further Short-Term Downside for Ethereum Despite Slight Rebound
After plummeting towards 0 yesterday, bulls stepped up and propelled Ethereum back above 0, although this rally hasn’t been incredibly strong, as ETH is now at risk of once again dipping back below this price level.
Ethereum’s recent selloff has erased nearly all of the gains the cryptocurrency incurred in late-January and early-February, with the crypto currently trading down nearly 0 from its intra-rally highs of 0.
Despite this intense selloff, it is important to note that it is still trading up from its year-to-date lows of 5.
Crypto Michaël, a prominent cryptocurrency analyst on Twitter, explained in a recent tweet that the key zone ETH needs to break above in order for another uptrend to kick off is 2, and a failure to break above this region could catalyze significant losses.
“Ethereum: Bouncing from the 5 level here. Main key zone to break is 2-216. Doubt we’ll break it. Looks more natural for a bearish retest and dropdown after towards 0-180,” he explained.
$ETH #ETHEREUM
Bouncing from the 5 level here. Main key zone to break is 2-216.
Doubt we'll break it.
Looks more natural for a bearish retest and dropdown after towards 0-180. pic.twitter.com/1yoOddpSiL
— Crypto Michaël (@CryptoMichNL) March 10, 2020
A Visit to 0-0 Could Spark an Explosive Parabolic Rally Up Towards 0
Bitcoin Jack, another popular cryptocurrency analyst on Twitter, explained in a recent tweet that he will be “buying all the ETH” he can once it dips to between 1 and 6, as the support in this region could lead the cryptocurrency to rally as high as 7 in the near-term.
“Truth is that I will be buying all ETH I can between 1 and 6 if it gets to it. I will then gladly sell it all back to you between 6 – 7,” he explained while pointing to the levels marked on the below chart.
Truth is that I will be buying all $ETH I can between 1 and 6 if it gets to it
I will then gladly sell it all back to you between 6 – 7 https://t.co/Ar6iRroOt7 pic.twitter.com/7aVOqHCz0E
— //Bitcoin 𝕵ack (@BTC_JackSparrow) March 10, 2020
The coming few days and weeks should provide investors with insights into just how imminent a movement to the mid-0 region is, as any further Bitcoin bearishness will likely lead altcoins to also plummet lower.
For Ethereum, however, this potential near-term dip could prove to be highly bullish, and ultimately allow it to begin its next parabolic rally.
Featured image from Shutterstock.
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