Ethereum saw one of the most extreme declines it has seen following mid-March yesterday, with the cryptocurrency’s value rolling from highs of $415 to lows of $300 in a matter of moments.
This drop caught bulls off guard, as the crypto was earlier flashing hints of apparent intensity as it pushed above each day.
ETH’s distinctive drop also appeared together with that observed by Bitcoin, which suffered a severe refusal at $12,000 that prompted its price to decline down towards $11,000.
Both assets have after gained from their lows, with ETH’s comeback being a bit more notable than BTC’s. One outcome of this volatility has been extensive liquidation of long positions – with Ethereum bulls facing losses equaling at well over $100 million as an effect of this tendency.
Analysts are now perceiving that the cryptocurrency still looks to be secure from a macro aspect notwithstanding this latest drop.
For this strength to change into the additional upside, still, it needs to overcome the resistance that has been built around $390.
Ethereum Acquires Extreme Volatility as Bulls Face Broad Liquidations
At the time of review, Ethereum is trading down just over 4% at its current price of $370. This signals a distinguished decline from daily highs of $415 that was produced yesterday evening.
It is essential to regard that notwithstanding ETH trading well under these highs, it has shown an extensive improvement from its everyday lows of $300 that was set beyond various major trading platforms.
The drop to these lows was short-lived but still prompted bulls to face widespread liquidations.
According to data from the crypto analytics platform Coinalyze, a total of well over $100 million worth of Ethereum long positions were liquidated as a decision of this selloff.
The severity of this decline was not sufficient to spark a cascade of liquidations, still, which is likely due to the huge bulk of ETH long positions still existing profitable notwithstanding the intensity of this move.
Analyst: ETH “Still Looks Strong” as It Hovers Below Key Level
Ethereum is now trading under its recent resistance that was settled at roughly $393. This could be a critical near-term level that bulls demand to seize to spark further upside.
It is noted that one leading analyst considers that further upside could still be expected despite this movement.
“TAKING MY CHANCES WITH SPOT ETH. STILL LOOKS STRONG – AND WORTH TAKING THE RISK OF HOLDING, IMO. THE LAST THING I WANT TO DO IS OPEN A CHART AND SEE ETH PRICE AT OVER $400 KNOWING THAT I SOLD A $375,” HE EXPLAINED.
Whether or not Bitcoin can maintain above $11,000 could be added critical factor that plays into ETH’s near-term course.