In yesterday’s trading, ETH prices saw one of the most intense dips it has registered since the mid-March market crash, with the second-largest cryptocurrency plunging from highs of $415 to hit lows of $300 in the span of just minutes.
The unexpected decline, which came about in tandem with a sharp seen in BTC markets, is likely because of widespread liquidation of long positions – with ETH bulls facing losses of up to $100M due to this price movement.
This decline caught bulls off guard, as the top altcoin was previously flashing signs of strength as it pushed higher over the past week.
Luckily ETH prices have recovered well to trade up by 1.28% in the last 24 hours at its current price of $393.96 at press time.
Could Bitcoin Prices Hit 12k?
Over the weekend, there was a strong increase in Bitcoin prices above the $11.5K level as the world’s leading cryptocurrency even broke the $12K level and traded to a new multi-month high above $12,100.
A high was formed near $12,115 high before the price suddenly plunged by $1.4K while breaking key support near $11K. There was a drop below $10,850, but BTC prices managed to stay above the important support near $10,500.
At the time of writing, BTC seems to be struggling to clear the $11,200 resistance level and is changing hands at $11,197.
In the near term, the flagship crypto must clear some major resistance near $11,450, with a successful close above the $11,500 likely to push the flagship crypto back into a bullish zone.
BTC Price is Now at a “Do or Die” Level
BTC has been finding some strong support at $11k throughout the past several hours, but it remains in a perilous position as it faces some intense selling pressure. Well, for the king coin’s strong mid-term uptrend to continue, buyers need to recapture $11,500.
In the coming sessions, whether or not buyers manage to establish $11,000 as a strong base of support will likely be the factor that determines where BTC price trends next.
“Need to move back up and close over $11,531, but after a drop like this, I’m not sure that we do immediately. Doesn’t mean price can’t pump, but volatility should be expected,” he noted.
Similarly, cryptocurrency analyst TeddyCleps echoed the importance of the $11.5K level, explaining that a weekly close above $11,500 would fuel a further upside continuation.
TeddyCleps argued that on the downside, a break below this level could lead to a consolidation period that bodes well for altcoins.