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Ethereum has been showing signs of an upward trend over the course of the week, and yesterday, the cryptocurrency attempted to go up on the markets.
Recent growth in selling pressure may stall this upward trend.
The Ethereum rally that seemed to be building has come to a pause as traders are facing high selling pressure from the market.
Analysts and investors have been positioned to take advantage of a bullish run, but they are now seeing that the near term signs may demand that traders should sell their holdings.
If the selling pressure takes effect, Ethereum could fall towards the $160 mark, which would provide support for the asset.
Falling to around $160 could prompt another wave of buying, which would see Ethereum climb the crypto markets again.
Sellers in control on markets
Ethereum has been recently trading at a high of around $185, and it has fallen to about $173 over the last few days.
This marks a drop of close to 2%, which is contradictory to the rise that had been predicted by analysts.
The price fall came as a result of Ethereum’s failure to find support in the $180 region, and there is a high likelihood that it will continue to face further selling pressure in the near term.
This selling pressure comes at a time when Bitcoin is trying to find the consolidation of its own around the $8,000 mark.
One popular crypto analyst on Twitter, Josh Olszewicz said that Ethereum is currently experiencing a bearish technical formation that has resulted in price falls in the past.
Chances are high that the resulting performance of Ethereum will be influenced by how Bitcoin does in its endeavor to find support at its current trading price.
Whichever direction Bitcoin will take, it will have an effect on Ethereum’s run.
ah ya, the ol' inverse scythe pic.twitter.com/o0GuEFb4u1
— Josh Olszewicz (@CarpeNoctom) October 2, 2019
Ethereum to fall further before entering bullish run
Another crypto analyst, who goes by the name HornHairs on Twitter, noted that Ethereum would probably fall below $160 before it goes upwards again.
The analyst expects the crypto asset to drop its price over the next couple of weeks as selling pressure mounts.
If it drops below the $160 mark, there will likely be an immediate increase in buying pressure, which will lead to significant price gains.
HTF view remains the same, bullish SFP at demand… the type of thing I look for during reversals
LTF shows clearly mapped out levels for the coming days/weeks. Bids from $160-170 not a bad move for a longer term play… pic.twitter.com/43Hya3yY2v
— HornHairs 🌊 (@CryptoHornHairs) October 2, 2019
The majority of altcoins are currently in limbo as Bitcoin continues to sit at a critical point.
There is uncertainty about the possible direction which the leading cryptocurrency could take, and this leads to uncertainty across the markets as a whole.
The Ethereum community will be keeping a close eye on the developments around Bitcoin over the next few days and hope that the cryptocurrency does not suffer further.