Ethereum (ETH) has been the subject of detailed analysis by prominent crypto analyst Rekt Capital over the past few weeks. In recent updates, the analyst has been closely monitoring ETH’s price action, particularly focusing on key support and resistance levels that could determine the cryptocurrency’s short-term trajectory.
Ethereum Drops into Key Support Level but Rebounds
In a previous analysis, Rekt Capital highlighted a potential scenario where ETH could face rejection from a blue circled area on the price chart, leading to a drop into an orange circled level. As anticipated, ETH did indeed drop to the orange circled level, but the cryptocurrency managed to rebound from this key support area.
However, despite the rebound, ETH has struggled to build on this momentum and maintain a sustained upward trajectory. The cryptocurrency is currently holding a crucial black mid-point level, which is acting as a pivotal area within its current range.
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Crucial Mid-Point Level Holds Key to ETH’s Short-Term Trajectory
The black mid-point level has emerged as a critical area for ETH, as it could determine the cryptocurrency’s short-term price action. If Ethereum manages to hold above this level, it could potentially gather strength and make another attempt at breaking through the blue circled resistance area.
However, if ETH loses the black mid-point level, the analyst suggests that the cryptocurrency could revisit the orange circled Range Low. In such a scenario, ETH would likely test this support level with candle bodies rather than the downside wicks observed over the past few weeks. This development could indicate a weakening of the Range Low support, which may open up the possibility of further downside pressure.
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The ability of ETH to maintain its position above the black mid-point level will be crucial in determining whether the cryptocurrency can gather sufficient momentum to challenge the blue circled resistance area.
On the other hand, a breakdown below the black mid-point level could expose ETH to increased selling pressure, potentially leading to a more significant pullback towards the orange circled Range Low.
