Ethereum experienced a strong and severe sell-off overnight that pushed its price to a low of $ 585.
This is roughly the price at which the cryptocurrency was able to find strong support that caused it to form a “V-shaped” rebound.
The medium-term trend is likely to depend largely on the continuation of this recovery, as a strong recovery from here could confirm that these lows mark a long-term low
A rejection of the $ 620 level, which has served as a resistance level for the past few days, could weaken the price’s technical strength.
An analyst now notes that the overnight decline put the cryptocurrency in a precarious position, with ETH almost overriding its uptrend.
Ethereum and Bitcoin Trader have both seen some rocky price action lately, but ETH seems to be hit harder.
Overnight, ETH fell below $ 600 and hit a low of $ 585 before the bulls put an end to the sell-off.
In the meantime ETH has made up practically all of its losses and is now aiming to break above the resistance at $ 620.
One analyst comments that the overnight decline put Ethereum in a precarious position – but that no longer appears to be a problem.
Ethereum is recovering from a strong nightly sell-off
Ethereum is currently trading with a plus of almost 2% to its current price of $ 610. This is roughly the price that ETH has been trading at for the past few days.
The price plummeted as low as $ 585 overnight before buyers stepped in and slowed the decline. This strength seems to suggest that another uptrend could be imminent in the coming days.
However, there is resistance at $ 620 that may be difficult to overcome in the short term.
Trader claims that ETH has almost weakened its uptrend
A prominent analyst wrote in a tweet during the massive Ethereum sale that the bull trend in the cryptocurrency is close to being overdue due to the intensity of the decline.
The fact that the bulls pushed the price up quickly almost immediately after breaking below $ 600 shows that they are still in control of the price action. The analyst with reference to the chart below:
“4h ETH: bad news: bull trend over … good news: next entry should be pretty obvious”
Bitcoin is still leading the market, so its short-term price action is critical to Ethereum and other major altcoins.