Ethereum has seen some intense selling pressure throughout the past day, which has struck a blow to the technical strength that was brought about by the buying pressure seen yesterday.
This decline has made it grow increasingly unclear as to where the crypto may trend in the near-term, but it does seem as though it may be positioned to see significantly further downside in the near-term.
One analyst, while speaking about this recent decline, noted that it appears to have been sparked by a so-called “whale” who had been previously walking up the cryptocurrency’s price by spoofing buy orders.
The analyst notes that this whale “pulled the rug” on ETH, sparking today’s decline. As such, it may continue seeing heightened weakness in the near-term, as it has now broken below a key support level.
Unless this level is recaptured, there’s a strong likelihood that the cryptocurrency continues plunging lower in the near-term.
Ethereum Sees Sharp Decline as Market-Wide Weakness Mounts
At the time of writing, Ethereum is trading down over 8% at its current price of $357. This marks a notable decline from its daily highs of $390 that were tapped yesterday at the peak of the uptrend.
This upswing came about in tandem with BTC’s push to highs of $10,600, which is around the price at which it found some significant selling pressure that slowed its ascent.
Analysts are now noting that the entire market’s near-term directionality may depend largely on BTC’s reaction to $10,200, which is where it has established some strong support in recent weeks.
If the benchmark cryptocurrency does break below this level, it could create tailwinds that further unwind Ethereum’s recent strength.
ETH Whale Unwinds Uptrend Following Spoof Orders
While speaking about Ethereum’s recent uptrend, one analyst observed that it had been driven primarily by spoof orders from a single whale on Bitfinex.
That being said, his removal of these bids is what may have sparked today’s downtrend. It also helped lead the cryptocurrency below a key support level within the $360 region that was previously strong support.
“ETH update: Well done Mr. Whale man. Said it from the start of this rally that it was being walked up by a whale. And there’s the rug. It should bounce around here according to some of my previous analysis, but I’m not inclined to jump in yet, too much dump too fast.”
Image Courtesy of Chase_NL. Chart via TradingView.
How Ethereum trends in the coming few days may depend largely on its continued reaction to the support it is finding at $350, and whether or not it can reclaim $360 in the near-term.
Featured image from Unsplash. Charts from TradingView.