Analyst: Ethereum May Grind to $280 Before ETH 2.0 Hype Propels It Higher
- Ethereum and other altcoins have been struggling to garner any strong momentum following the massive declines posted earlier this week
- This weakness came about as a result of Bitcoin’s rejection at $11,200, which is a level analysts have been watching
- Until BTC’s macro outlook begins growing more positive, Ethereum will likely continue struggling as well
- That being said, some positive technical developments in the coming months could help boost its outlook
- One analyst is noting that he expects ETH to drag down towards $280 before it finds any significant support
- He also notes that this may be where a confluence of technical strength and news-based developments push it significantly higher
Ethereum and the aggregated cryptocurrency market have been caught within the throes of volatility as of late. Much of this has come about as the result of Bitcoin’s price action.
Despite holding above its key resistance at $380 for an extended period of time, ETH’s inability to push towards $400 made buyers lose faith in its near-term outlook.
In the time since declining from the upper-$300 region, the cryptocurrency has been hovering between $335 and $345. Each visit to either of these levels has been followed by a rapid move in the other direction.
One analyst doesn’t expect this sideways trading to continue. He believes that ETH may push down towards $280 before finding enough support to boost it higher.
Ethereum Consolidates Alongside Bitcoin and Crypto Market
The entire cryptocurrency market is currently trading sideways.
At the time of writing, Ethereum is trading down marginally at its current price of $341. This is around where it has been at for the past several days and weeks.
Similarly, Bitcoin has also been trading sideways around $10,500. Until BTC gains some decisive momentum in one direction or another, it is unlikely that Ethereum will be able to break out of its current range.
Analyst: Here’s How Low ETH May Drop Before Rallying Higher
While speaking about where Ethereum may trend in the near-term, one analyst explained that he anticipates it to see a slide down to the $250-280 region before it finds any strong support.
He notes that the dip to this region may occur around the time when hype for ETH 2.0 begins building, with this support acting as a launchpad for further gains.
“This is the dream: $250-280 to build position. Eth 2.0 catalyst and continuation all of 2021,” he said while pointing to the chart see below.
Image Courtesy of Pentoshi. Chart via TradingView.
The coming few days should provide investors with insight into the market’s near-term outlook, as Bitcoin’s trend will likely guide that of Ethereum and other altcoins.
Featured image from Unsplash. Charts from TradingView.