• Ethereum has been closely tracking the price action seen by Bitcoin and other major altcoins, but it has been able to dodge seeing any intense decline overnight
• Although it did plunge as low as $530, the cryptocurrency’s support at this level sparked a “V-shaped” recovery that allowed it to surge up towards the upper-$500 region
• It has since found some resistance around this price region, which isn’t too surprising given the state of the overall market
• One trader is closely watching for another leg down to the $500 region, noting that this will likely prove to be a long-term bottom for the cryptocurrency

Ethereum’s price action has been somewhat lackluster as of late, with the cryptocurrency closely tracking Bitcoin’s price action as of late.

This has exposed it to some serious downside over the past 24-hours, as the recent consolidation phase seen by BTC around $19,000 resulted in a bearish breakdown that sent BTC plunging to $17,700 while ETH hit lows of $530.

These lows for both cryptocurrencies proved to be short-lived, as ETH has since erased most of its losses while BTC was able to climb back above $18,000.

One analyst is still forecasting a decline towards $500, noting that this will likely prove to be a long-term floor for the cryptocurrency.

Ethereum Rebounds Following Overnight Selloff

At the time of writing, Ethereum is trading up just over 3% at its current price of $570. This is around where it has been trading throughout the past few days.

Overnight, its price declined as low as $528 before it found some immense buying pressure that sent it rocketing up towards the upper-$500 region.

The buying pressure here has slowed down as the cryptocurrency begins finding some resistance. Whether or not it can flip $600 into support should offer serious insights into its mid-term outlook.

Analyst Claims ETH Bottom is Nearing

One trader believes that Ethereum’s long-term price floor will likely be $500.

This level has held strong throughout all of the Bitcoin-induced selloffs, with bulls ardently buying any dip towards or below this level.

“ETH: $500 potential bottom,” the trader explained while pointing to the chart seen below.

Image Courtesy of il Capo of Crypto. Source: ETHUSD on TradingView.

If this level continues holding as a strong base of support, it could ultimately be what helps propel the cryptocurrency firmly into the $600 region.

Whether or not this level holds strong will likely depend mostly on Bitcoin, as any intense decline could create serious headwinds for Ethereum as well.

Featured image from Unsplash.
Charts from TradingView.

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