It was a turbulent day for Ethereum (ETH), with the cryptocurrency showing some signs of weakness after Bitcoin’s drop to $ 22,000 lows.
Although BTC recovered most of its losses after this decline, the price of ETH remained quite low and shows little sign of recovery anytime soon.
The next trend should depend largely on whether or not buyers will be able to step up and provide ETH with a short-term boost.
A trader is noting that Ethereum is resting at the top of a key support zone that could boost its price and allow it to see significantly greater momentum in the coming days and weeks.
Ethereum loses ground against Bitcoin as sellers take control
At the time of writing, Ethereum has dropped just over 3% at its current price of $ 617. This is around the price it has been trading for the past few hours.
Overnight, the price of the cryptocurrency fell to a low of $ 600 before finding some major support and went up.
It has been rising slowly since then, but its recovery has not yet reached the intensity seen by Bitcoin.
Trader says ETH is at an important support level
While sharing his thoughts on the Ethereum price action, a trader explained that he is watching to see how cryptography continues to respond to a key support region that has been holding up lately.
He notes that a break below that level can be terrible and trigger a deep setback.
ETH: I think the green area is a solid purchase. Break it down and I think we’ll be accelerating towards the middle range very fast.
Think green area is a solid buy. Break below and I think we’ll be accelerating towards range mean pretty fast. pic.twitter.com/LYWd9CvdfC
– George (@ George1Trader) December 21, 2020
Unless Bitcoin dives and creates more headwinds for Ethereum, there is a strong possibility that it will soon establish this as a fund on which it can grow.