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January 26, 2021
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Ethereum has just reached a key support level

Ethereum failed to exceed its ATH during the last bull rally

Ethereum faced a strong correction after reaching a price peak near $ 1,350 last week. The cryptocurrency is currently trading for $ 1,050, although it dropped to $ 950 on Monday due to an influx of selling pressure. During the fall, ETH futures’ financing rates were extremely over-leveraged.

In some cases, long position holders paid more than 0.15% every eight hours to keep their positions open. This extremely high financing rate in the Ethereum futures market indicated that buyers were over-leveraged. Since then, the cryptocurrency has jumped to $ 1,050, although it rose to $ 1,130 on Tuesday.

Ethereum needs to hold the $ 700 region

Crypto analyst Michael Van De Poppe says Ethereum reached an important level of interest during the recent correction, holding $ 900. While the cryptocurrency remains above that support level, Van De Poppe says all eyes should be on $ 700, which is where Ethereum suffers after the correction:

“#Ethereum has reached the first level of interest here at around $ 900. She is looking for a new higher fund after this higher top, which is natural. Also looking at the $ 700 region. If that correction ends, $ ETH is ready for $ 2,000 +. ”

If Ethereum manages to maintain these key levels, he explained, the cryptocurrency is likely to reach new records, exceeding $ 2,000. Ethereum’s previous record is $ 1,450, set in early January 2018 after the Bitcoin correction seen in late 2017.

Image by: TradingView

Macro trend still up

Despite short-term trends, other analysts also remain optimistic about Ethereum from a macro point of view. One trader noted that cryptocurrency is reaching a key support level from a medium to long-term perspective and is therefore likely to maintain its upward trend:

“The macrostructure looks good and there is a pleasant recovery so far from this key support region. Now is the time to see if that previous support level will turn into resistance. It is quite vital here that both pairs increase in LTF. “

There are expectations that Ethereum will receive an offer in the coming days due to the great retail interest in cryptocurrency. Just yesterday, analysts on Twitter noticed that search interest in the search term “Ethereum” reached a new record. At the same time, a PayPal affiliated exchange saw an influx in demand for the second largest cryptocurrency.

Source: BTC News

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