Analyst Plans to Short Ethereum if Key Support Level Breaks

• Crypto analyst Crypto Tony believes Ethereum is resting on a crucial support level.
• Ethereum has resisted efforts to breach the lower support level of $1,620.
• Ethereum’s subsequent direction will significantly impact the cryptocurrency market’s future.

Prominent crypto analyst Crypto Tony believes that Ethereum is currently resting on a crucial support level, and its subsequent action will depend on the outcome. In a recent update, Tony indicated that he would take a short position on the leading alternative digital currency if it fails to maintain its stability on the existing support level.

Tony provided a screenshot illustrating that the ETH/USDT pair primarily traded within a range on the 4-hour chart. The screenshot revealed that ETH/USDT has been trading between the lower price point of $1,620 and the higher price point of $1,700. Nevertheless, the price has consistently hovered around the lower end of the range, repeatedly testing the support level.

Ethereum has consistently resisted numerous efforts by the bulls to breach the lower support level. Tony’s analysis indicated that ETH’s price dipped below the support level multiple times but could not sustain a position beneath it. Rather, following each drop below the support, the 4-hour candles consistently rebounded above this level before closing.

Tony’s graphical analysis did not exclusively predict a price decrease. As highlighted, surpassing the $1,700 price point could alter the ETH/USDT outlook and trigger a bullish surge. Nevertheless, the pair’s latest price behavior indicates a possible bearish trend. Consequently, Tony is ready to short the cryptocurrency pair if it experiences a downward breakout.

Ethereum is the most valuable altcoin in market capitalization and is dominant in the altcoin market. Together with Bitcoin, Ethereum significantly impact the price direction of other altcoins within the cryptocurrency market. Therefore, during crucial times, most cryptocurrency analysts closely monitor the happenings in the Ethereum market.

At the time of this report, Ethereum is trading at $1,625, testing the support level set on June 23, 2023. The leading alternative cryptocurrency has been trading within a notably narrow range since the start of September. Market analysts think that the subsequent direction of Ethereum will play a pivotal role in shaping the cryptocurrency market for the remainder of the year.