- Ethereum, like Bitcoin, is currently flashing some immense signs of strength as it pushes past $400
- The resistance at this price level remains heavy, so buyers must continue propelling the crypto higher in the near-term
- Where ETH trends next as it hovers around this crucial level may depend on Bitcoin, as it guided the market’s latest movement
- If Ethereum’s buyers remain strong in the near-term, they may next look to target the crypto’s recent highs at $415
- There is a crucial level that it has yet to surmount, however, and one analyst is cautioning against getting too excited until there is a breakout above this level
Ethereum is in the process of trying to gain a foothold above $400 as its buyers start showing intense signs of strength.
This movement came about in tandem with that seen by Bitcoin and most other major altcoins, which are all starting to navigate up towards high time frame resistance levels.
Despite the overt strength of ETH at the moment, even some of its most ardent bulls are noting that it’s starting to become a good time to hedge, as a pullback could be imminent.
One trader who forecasted Ethereum’s recent rally when it was still trading around $230 is now noting that a pullback towards $360 may take place before it is able to extend its momentum much further.
Ethereum Pushes Towards $400 as Buying Pressure Mounts
At the time of writing, Ethereum is trading up over 3% at its current price of $400. It has been hovering around this level for the past couple of hours, struggling to extend its momentum from here.
If bulls can flip this resistance into support, the next key level to watch is its local highs at $415.
Despite the strength it is presently flashing, one analyst explained in a recent tweet that he believes ETH may soon see a pullback towards $360 before it rallies much further.
“ETH / USD: I really want to start looking to take profits/hedge some of my position here as would like to see a pullback to around $360 at some point in the near future… Honestly it’s really hard to be a HTF bear, I see no reason how I can hedge when we close above $375…”
Image Courtesy of Cactus. Chart via TradingView.
ETH Has Yet to Shatter This Crucial Resistance
While looking towards Ethereum’s Bitcoin trading pair, another analyst is noting that it is hard to be euphoric until it breaks above 0.0415.
“The holy land for ETH and the rest of the altcoin market is above 0.0415. For me, that’s the most important area of resistance moving forward. I don’t want to get too excited *before* a breakout above that confluence of important levels.”
Image Courtesy of Nik Patel. Chart via TradingView.
Because Ethereum is currently trading at 0.034 BTC, it still has a way to go before it can test this level.
Featured image from Unsplash. Charts from TradingView.