Why Ethereum Is Primed to Move Higher Despite Drop From $460 Highs
- Ethereum has faced a drop since the $465 highs it reached last week when Bitcoin broke toward $16,000.
- ETH trades for $445 as of this article’s writing.
- Still, analysts remain confident in the cryptocurrency despite the recent price weakness.
- This is due to a confluence of both technical and fundamental signals for the second-largest crypto-asset by market capitalization.
Ethereum Could Push Toward $500
Ethereum has faced a drop since the $465 highs it reached last week when Bitcoin broke toward $16,000. ETH currently trades for $445, far from the lows of the retracement set last week but far from the highs.
Analysts remain confident in the cryptocurrency despite the recent price weakness. This is due to a confluence of both technical and fundamental signals for the second-largest crypto-asset by market capitalization.
ETH is up 0.1% in the past 24 hours as bulls try and reclaim some ground after a drop.
One crypto-asset analyst shared this chart below in the wake of the drop, noting how Ethereum remains bullish on a medium-term time frame. The chart shows that the cryptocurrency’s recent price action is actually a breakout past a critical resistance level, then a subsequent retest of that level as support. It is far from a perfect retest, though indicates that Ethereum could continue its ascent to the upside in the near future.
The resistance level that Ethereum just tested as support is one of a critical importance for bulls.
As can be seen below, the level marked the initial highs of the summer rally, then also marked the point at which that the late-August and early-September correction picked up steam.
This precedent suggests that since Ethereum confirmed that level as support, it will be primed to move toward $500 in the weeks ahead.
Chart of ETH's price action over the past few months on a daily scale from crypto trader and asset analyst Income Sharks (@Incomesharks on Twitter) Source: ETHUSD from TradingView.com
As reported by Bitcoinist previously, a trader recently pointed to five signs indicating that Ethereum could soon move higher against Bitcoin. The chart seen below was shared to encapsulate this belief.
Chart of ETH's price action against Bitcoin over the past few weeks with analysis by crypto trader "Steve" (@Thetradingtramp on Twitter). Source: ETHBTC from TradingView.com
All Eyes on Bitcoin
Although Ethereum may be in a technical position to rally, its price action is dictated largely by Bitcoin at the end of the day.
Fortunately for Ethereum bulls, analysts are confident that Bitcoin will continue its move higher in the days ahead. They point to the strong weekly candle close above $14,000, which establishes it as support.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Why Ethereum Is Primed to Move Higher Despite Drop From $460 Highs
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