Ethereum Close to Posting Long-Term Bottom as Analysts Eye Massive Upside

Ethereum (ETH) has seen some intense bearish price action over the past couple of days, which has largely stemmed from the bear-favoring market structure that Bitcoin has formed in the time following its recent “flash crash” below $10,000.

One top trader is now noting that he believes the cryptocurrency could see some further near-term losses, with its selloff potentially slowing when it reaches its key near-term support around $220.

Another top trader also believes that a visit to this level could mark a long-term bottom for ETH that is followed by significantly further upside.

Ethereum Plummets 12% as Bears Attempt to Erase All of its Recent Gains 

At the time of writing, Ethereum is trading down just under 12% at its current price of $222, which marks a notable decline from daily highs of roughly $260.

This is also the lowest point at which ETH has been trading at in the time following its intense parabolic rally seen earlier this month, which first started when the crypto broke above $200, and ended when bulls ran out of steam after pushing the crypto as high as $290.

The ongoing retrace from these highs seems to spell trouble for the cryptocurrency in the near-term, as bull’s inability to generate any notable support in the time following its parabolic rally’s peak suggests that its market structure may be fundamentally weak.

In spite of this, George, a popular cryptocurrency trader on Twitter, explained that he believes it will see “one more capitulation wick” that leads it towards $200 before establishing this level as a long-term bottom.

“ETH: Very close to key weekly and daily support. Give it one more capitulation wick into low 200’s and bottom should be in,” he explained.

Don’t Fret: ETH’s Ongoing Decline is “More Than Healthy”

George isn’t the only top trader who is bullish on Ethereum in spite of its ongoing price decline, as Crypto Michaël – another well-respected trader – explained in a recent tweet that after nine weeks in a row of posting green candles, ETH was long overdue for a healthy retrace.

“Ethereum had 9 green weeks in a row and rallied from $116 to $288. A retrace is more than healthy before a next move and feels even more organic than a straight moonshot. Just don’t go in extreme emotions, it’s not making new lows,” he stated.

As long as bulls are able to support ETH above the lower-$200 region and catalyze some upwards momentum here, it is highly likely that the crypto will soon see further near-term upside.

Featured image from Shutterstock.

Source: newsbtc.com

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