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- After Bitcoin and Ethereum attempted to surge past $12,000 and $400, respectively, the momentum has tapered off.
- Over the past day, the leading cryptocurrencies have plunged lower despite a weakening U.S. dollar.
- As of the time of this article’s writing, ETH is down 2.85% in the past 24 hours and now trades for $385.
- Analysts say that Ethereum is primed to move towards $300 as last week’s highs hold as resistance.
- The bearish sentiment can be corroborated by the trajectory of gold, which has flipped negative after a strong rally over the past two weeks.
Ethereum Could Drop Towards $300: Trader
Ethereum is preparing to drop around 20-25% towards $300 as the cryptocurrency sees multiple wicks into the ~$420 macro range high, one trader suggested on August 11th:
“$ETHUSD – 3 weekly wicks into the range highs thus far, Leaning towards a local top being formed. Looking at $300 level to long a pullback / bounce. Or flipping the range highs to get long again.”
Chart of ETH's macro price action with an analysis by trader "TraderXO" (@TraderX0X0 on Twitter). Chart from TradingView.com
The trader sharing this chart comes shortly after he noted that both Bitcoin and Ethereum are technically weak on a macro scale, despite prices consolidating near range highs:
“Im only considering 12k+ btc prices once it closes convincingly above the HTF mid range. Until then, expecting lower prices to get back fully into bitcoin and possibly eth,” the analyst wrote discussing how ETH could move lower.
This trader isn’t the first to have discussed Ethereum retesting $300 in the weeks ahead as the bull trend stalls.
As reported by Bitcoinist previously, one trader shared this chart late last week. It shows that ETH could drop towards $300 as that would align with the “Fibonacci and horizontal confluence.”
Chart of ETH's price action since the start of the year with analysis by trader "Vast" (@Cryptovast on Twitter). Chart from TradingView.com
Bitcoin Bulls May Still Be in Control
While Ethereum may look bad, Bitcoin does not look as worse for wear, say analysts. As ETH does follow Bitcoin sometimes, this may suggest that the cryptocurrency may not fall as far as some expect.
A cryptocurrency trader shared the chart below just an hour ago as of this article’s writing. He remarked that since Bitcoin bounced off the $11,300 range, it remains in a bullish short-term state. He expects this consolidation to resolve higher towards $12,000, then onto “untapped highs”:
“$BTC cleaned up some lows and finally filled the inefficiency on the move up. Fib cluster and 8H demand providing support for now. I think we march to $12k from here, untapped highs look ripe. HTF trends in tact, sitting on HTF support just below for context. #Bitcoin.”
Chart of BTC's recent price action by HornHairs. Chart from TradingView.com
Bitcoin and Ethereum, though, may be influenced by macro trends that deny the bullish scenario from playing out.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com A Crypto Trader Thinks Ethereum Could Plunge Towards $300 as Momentum Slows
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