- It’s no secret that Ethereum holds heavy influence over the altcoin market, with its price swings and general trend often influencing that of smaller altcoins
- Where they trend in the near-term may largely depend on Ethereum’s reaction to $600, as this has long been a key level for the cryptocurrency that has hampered its growth
- Breaks above here have been fleeting, with sellers largely controlling the region between $600 and $620
- A firm break above here and a flip of $600 into resistance could send altcoins rocketing higher
- One analyst is now pointing to the cryptocurrency’s Bitcoin trading pair, explaining that he is watching for its reaction to a key level to tell where the altcoin market is going to trend in the mid-term
Ethereum’s price action has been holding serious sway over the DeFi markets as of late, with its general trend guiding that of this smaller market fragment.
It has also gained influence over other parts of the market as well, with the overall state of most major altcoins generally being correlated to that of Bitcoin and Ethereum.
That said, one analyst is now closely watching for Ethereum to see further bullish follow-through before he dives deeper into altcoins, noting that he is closely watching to see how the crypto responds to one key support level.
Ethereum Struggles to Break $600 Despite Market-Wide Strength
At the time of writing, Ethereum is trading down marginally at its current price of $585. Last night, bulls attempted to send it past $600 in tandem with Bitcoin’s move to $19,600, but the selling pressure here proved to be significant.
This is the crucial level to watch in the near-term, as flipping this into support is imperative for ETH to see any significantly further mid-term upside.
It also faces some intense resistance around $620, making this another key level to watch closely.
Trader: ETH Needs to Defend Key BTC Support for Altcoin to Rally
One trader is closely watching Ethereum’s Bitcoin trading pair for insight into its near-term outlook.
He notes that a defense of a key near-term support level could confirm its strength and open the gates for altcoins to rally higher.
“ETH: One week later and not much happening here. I still have light exposure to alts – but essentially waiting to see if ETHBTC breaks down, offering a deeper pullback presenting a buying 0.26 – 0.27 levels. Simultaneously looking for buy the dip opportunities on alts.”
Image Courtesy of TraderXO. Source: ETHUSD on TradingView.
So long as it holds up against Bitcoin in the near-term, there’s a strong possibility that Ethereum could soon provide some serious tailwinds for altcoins to rally higher.
Featured image from Unsplash. Charts from TradingView.