Ethereum saw a sharp correction after hitting a high of $ 1,350 last week. The cryptocurrency is currently trading for $ 1,050 but fell to $ 950 on Monday due to mounting selling pressure.
During the decline, the refinancing rates on the ETH futures markets were extremely overfinanced. In some cases, long position holders paid more than 0.15% every eight hours to keep their positions open. This extremely high refinancing rate on the Ethereum futures market showed that buyers were overfunded.
The cryptocurrency has since risen and returned to $ 1,050, despite climbing as much as $ 1,130 on Tuesday.
According to analysts, Ethereum comes next after this volatility.
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Ethereum must hold $ 700
Crypto asset analyst Michael Van De Poppe says Ethereum has reached levels of key interest during the recent correction, holding $ 900. While the cryptocurrency remains above this support level, Van De Poppe says all eyes should be on $ 700. Here Ethereum could place a bid next after the crushing correction:
“#Ether got the first interest here at around $ 900. It’s looking for a new higher low after that higher high, which is natural. Also keep an eye out for the $ 700 region. When this correction is finished, $ ETH is ready for over $ 2,000. “
If Ethereum manages to maintain these key levels, the cryptocurrency will likely hit new highs above $ 2,000.
Ethereum’s previous all-time high is $ 1,450, which was set in early January 2018 after the Bitcoin correction in late 2017
Chart of ETH's price action over the past few years with an analysis by crypto trader Michael Van de Poppe (@CryptoMichNL on Twitter). Source: ETHUSD from TradingView.com
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Macro trend still bullish
Despite short-term trends, other analysts also remain optimistic about Ethereum from a macroeconomic perspective.
One trader noted that the cryptocurrency will reach important levels of support in the medium to long term and is therefore likely to maintain its upward trend:
“The macrostructure looks good so far and is recovering well from this important support region. Now is the time to see if that level of previous support is now being turned into resistance. It’s pretty important that both pairings be higher on LTF. “
There is an expectation that Ethereum will receive a bid in the coming days due to the huge retail interest in the cryptocurrency.
Just yesterday, analysts on Twitter discovered that search interest in the search term “Ethereum” had reached a new all-time high. At the same time, an exchange affiliated with PayPal has seen an increase in demand for the second largest cryptocurrency.
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Featured Image from Unsplash Chart from TradingView.com Price Tags: ethusd, ethbtc Ethereum Just Hit a Key Support Level: Here's the Next Level to Watch