Ethereum and the aggregated cryptocurrency market are currently reeling lower alongside Bitcoin.
The benchmark cryptocurrency is trading just above its crucial near-term support at $9,000. Its ongoing decline comes shortly after yesterday’s Twitter hack in which prominent accounts shilled a BTC scam.
BTC’s decline has sent shockwaves throughout the market, also leading Ethereum to reel lower in tandem.
One analyst is now noting that how ETH responds to $225 could have major implications for the entire cryptocurrency market.
He postulates that a decline beneath this level would put a firm end to the ongoing “altseason” and delay the next one indefinitely.
Ethereum Approaches Historically Important Level
At the time of writing, Ethereum is trading down 3% at its current price of $232.
This is just above the lower boundary of its long-held trading range at $230, and it is likely that this level will act as support in the near-term.
Today’s decline has sent Ethereum reeling down from daily highs of over $240, and it does appear that the crypto is at risk of seeing even further downside.
One analyst recently explained that the crucial level to watch in the near-term is $225.
He believes that this level is the “biggest level in ETH history” and could hold sway over the entire market.
“Only reason I’m not super duper bearish rn is Bitcoin still being inside the range and ETH looking like this. Biggest level in ETH history (arguably) is around 225$.”
Image Courtesy of Smokey. Chart via TradingView.
Here’s How ETH Could Stop “Altseason” In Its Tracks
Ethereum’s reaction to this level may ultimately hold influence over the entire cryptocurrency market.
The same analyst noted in a later tweet that a daily close beneath this level would spell trouble for altcoins.
He said that it would lead to an “indefinite” delay for “altseason” – putting an end to the intense rallies seen by many smaller digital assets.
“ETH HTF View: If we fall back below 225 on a closing basis then Altseason continuation delayed indefinitely,” he noted.
If Ethereum breaches below its $230 support and hits this level, its reaction to it could set the tone for where the entire market trends in the days and weeks ahead.
Featured image from Shutterstock.Charts from TradingView.
