Ethereum and the aggregated cryptocurrency market is currently experiencing a bloodbath, with ETH and most other major altcoins plummeting over 10% as Bitcoin teeters above a critical support level that is beginning to look incredibly weak.
This grim price action has done severe damage to the bullish market structures formed by many cryptocurrencies throughout the past couple of months, leading many analysts to forecast significantly further downside.
One top trader is now noting that all hope is not lost for Ethereum, and that it could outperform the aggregated market if it is able to hold above one key level.
Despite this, the same analyst still believes the odds are currently counting in seller’s favor.
Ethereum Plummets 10% as Altcoins Face Dire Selloff
The past few days have been rough for the entire cryptocurrency market, but this is one of the first massive widespread selloffs that the market has seen in the time since its intense 2020 uptrend kicked off.
This bear-favoring price action has led Ethereum to plummet 10% to its current price of $229, which marks a notable decline from its recent highs of $290 that were set at the peak of its parabolic uptrend seen earlier this month.
Analysts are now widely noting that there is little support between its current price and its next key support at $200, which could mean that this is where it will drop to before its selloff slows down.
Mitoshi Kaku, a prominent cryptocurrency trader, shared his thoughts on ETH in a concise tweet, in which he says that $200 is his first level of interest.
“My first level of interest is $200,” he noted while pointing to the chart seen below.
— Mitoshi Kaku 👨🏻🚀 (@CryptoSays) February 25, 2020
Kaku isn’t the only trader targeting a movement to $200, as DonAlt – a highly respected trader – explained in a recent tweet that he believes this price level is Ethereum’s last level of hope, and that a defense of this level could spark further upside.
“ETH: It was time to play the range the other way around. As long as the monthly holds $200 not all is lost. Still think lower makes more sense than higher,” he noted.
It was time to play the range the other way around.
As long as the monthly holds $200 not all is lost.
Still think lower makes more sense than higher. pic.twitter.com/0MKuPr8sAQ
— DonAlt (@CryptoDonAlt) February 26, 2020
It is probable that Bitcoin’s price action will continue acting as a guiding force for Ethereum and other altcoins, with a break below $9,000 likely leading ETH to incur a violent selloff that leads it to its next critical support.