Analyst: Ethereum Could Rally Towards $432 if Bulls Flip One Key Level
- Ethereum has continued seeing lackluster price action while Bitcoin rallies past its critical short-term resistance
- The crypto is on the cusp of flipping its $390 resistance, however, which could give it freedom to rally significantly higher in the short-term
- One trader is now noting that a surge up towards $432 could be in the cards if ETH can break above its short-term resistance level
- This would be a significant rally that potentially puts a firm end to its phase of underperformance while BTC explodes higher
Bitcoin has been sucking all the oxygen out of the markets throughout the past couple of weeks, being one of the only cryptocurrencies to post consistent gains while most altcoins – including Ethereum – stagnate.
ETH’s lackluster price action as of late has been quite surprising, as it typically moves in lockstep with BTC.
Its inability to rally has also stopped many smaller altcoins from gaining any momentum, as they have been closely tracking Ethereum’s price action.
This trend may soon shift, however, as ETH is in the process of testing its $390 to $395 resistance.
One analyst contends that a break above this level could be all that is needed for its price to rocket up towards $432.
Ethereum Nears Key Resistance as Bulls Show Signs of Life
At the time of writing, Ethereum is trading up just under 2% at its current price of $389. This is a slight climb from its sub-$380 daily lows set just a handful of hours ago.
The cryptocurrency has long been struggling to break above $390 and $400 – with these two levels both acting as strong resistance in the past.
There’s a decent chance that they’ll continue suppressing its price action in the short-term, but a break above them could put a firm end to the pattern of consolidation and stagnation seen as of late.
Analyst: ETH Could Rally Towards $432 After Breaking One Key Level
While sharing his thoughts on where Ethereum might trend in the near-term, one analyst explained that a break above $395 could send the cryptocurrency up towards $432.
If this breakout does occur, it will also lead ETH past $420 – which is where an influx of selling pressure halted its latest rally.
“If ETH can flip $395 back to support, I think it’s headed straight to $432,” he said while pointing to the below chart.
Image Courtesy of Chase_NL. Source: ETHUSD on TradingView.
The coming day should provide some insights into where Ethereum will trend in the days and weeks ahead.
Featured image from Unsplash. Charts from TradingView.