Ethereum could be primed for a move to over $200 despite ongoing selloff

Ethereum has been closely tracking Bitcoin's price action over the past couple of weeks, which allowed it to post massive gains throughout the first part of the month, before setting a local top that has been followed by firmly bearish downside.

In spite of this, analysts are noting that Ethereum is fast approaching a key technical support level that is brimming with buy orders, which means that a visit to this level could catalyze a move to $200 or higher.

Ethereum reels towards $160 as crypto markets begin establishing downtrend.

At the time of writing, Ethereum is trading down just under 3 percent at its current price of $161.80, which marks a notable decline from its daily highs of $166 that were set around this time yesterday.

Over a slightly larger timeframe, it becomes apparent just how notable the cryptocurrency's recent downtrend is, as it is currently trading down from intra-rally highs of nearly $180. This poor price action has led the cryptocurrency to retrace over 10% from these highs, which has come about in tandem with Bitcoin's fall from highs of $9,200 to its current price within the lower-$8,000 region.

It is important to note that Ethereum has formed a bullish technical formation on its weekly chart, which Satoshi Flipper - a popular crypto analyst on Twitter - explained could lead the crypto up towards highs within the $300 region after one more sharp pullback.

"ETH Weekly Heikin Ashi = Bullish," he said while pointing to the formation seen on the below chart.

Satoshi Flipper is not alone in believing that Ethereum could see one more pullback before it posts a massive rally, as Calmly, another respected cryptocurrency analyst, noted that he is eying a pullback to $155 before it rallies to $180 or higher.

"Ethereum / ETH - I'm still not convinced we see bullish continuation yet. Last time we were at this weekly s/r lvl, we consolidated for 12 weeks before finally breaking down. I think it will take more than one test of this lvl for it to break. I expect to see ~$155 before $180.".

Although ETH's ongoing selloff may cut slightly deeper, it is likely that this will act as a catalyst for further gains.