The short-term structure of the Ethereum market shows some signs of weakness by the end of the year
Although encryption is mainly based on and lacks directionality, there is now great uncertainty throughout the encryption market.
This could continue to perpetuate investor fears, causing potential assets such as the ETH to see further declines in the coming days and weeks.
A trader is watching closely for another $ 300 test for encryption, noting that while its short-term outlook is volatile, the market macroeconomic structure is strong.
Notes that this potential reduction will probably not decrease deeper than $ 300 due to the abundance of technical support levels
The relentless phase of Bitcoin consolidation has done nothing to provide other cryptocurrencies - such as Ethereum - with any clear direction, causing the entire market to fall into a prolonged period of consolidation.
This has been shown to have a particular impact on altcoins in the DeFi sector, which are widely regarded as "high beta" assets with increased risk and volatility compared to their larger counterparts.
Ethereum, however, was simply monitoring every move of Bitcoin, trying to gain independent momentum.
A trader now notes that this could lead him to $ 300 before he finds significant support.
ETHEREUM TRACKS BITCOIN MUST START A FULL MARKET
At the time of writing, Ethereum is trading over 1% at its current price of $ 350. He has been negotiating there for the last few days.
Similarly, Bitcoin has frozen between $ 10,500 and $ 10,600, trying to give a trend to the entire market.
Ethereum is currently trading well above the $ 315 low during a strong sell last week.
HERE FOR A POSSIBLE TEST $ 300
One analyst believes that Ethereum could be in some further short-term weakness, despite the impressive signs of strength in the long-term chart.
He notes that it is very likely that ETH will test $ 300 in the short term, before reaching huge levels of technical support.
"ETH / USD: Personally with so much uncertainty in the market, it is very likely that we will see a $ 300 area test, which honestly said that the HTF structure looks great, a lot of EMA support below us… In 2018/2019 the 55 EMA resisted steadily, the price now tends to be much higher! "
If Bitcoin does not move higher and create a brake on Ethereum, growing uncertainty among investors may continue to plague its short-term prospects.