The price of Ethereum is currently struggling to overcome strong resistance, which has caused ETH to lag behind Bitcoin today.
The resistance at $ 380 has hampered its price action on several occasions over the past few weeks
Since BTC is now moving towards $ 11,000, a breakthrough above this crucial level should nevertheless trigger strong buying pressure, which also gives ETH a tailwind.
One analyst comments that this region of resistance between $ 385 and $ 410 could have some serious implications for Ethereum’s medium-term trend.
He notes that while a break above this level would be significant, a denial here could be enough to push the amount below $ 300.
Ethereum and the entire cryptocurrency market are showing mixed signals. As Bitcoin moves towards $ 11,000 and shows immense signs of strength, ETH and other major altcoins are stagnating somewhat.
The near-term market trends should have a serious impact on the smaller altcoins that have drawn investors‘ attention in recent months.
Should ETH be faced with a rejection in the resistance area between $ 385 and $ 400, it could stop the DeFi bullrun in its tracks and even create a headwind for Bitcoin.
Still, BTC’s current strength could prevail and help bring Ethereum past this crucial region.
Ethereum is struggling to keep up with Bitcoin
At the time of writing, Ethereum is trading at $ 373. That’s roughly what it traded to after a few brief declines to $ 350 over the past day.
At this point, the slump seemed to jeopardize ETH’s medium-term strength, but the bulls picked up and fought back against further price declines.
Where ETH goes next depends primarily on the reaction to the resistance region, which starts at around $ 380, as well as Bitcoin’s reaction to $ 11,000.
Analyst: ETH could dip below $ 300 if rejected on resistance
While talking about the resistance that exists just before the area where Ethereum is currently trading, one analyst stated that this will likely be the only factor that will determine the near-term outlook.
He points out that a rejection here could trigger a sharp move into the sub-$ 300 region.
“ETH will probably rise to the top of this channel at $ 400 here, and that’s where the moment of truth comes. I favor the RED way, but an HTF that is close above the RED region would force me to do a bullish flip. This will be interesting“
The coming days should show how important this price region will be for the development of Ethereum in the coming weeks.