- On the weekend, Ethereum plunged lower as the altcoin market bled out.
- At the local lows, the price of the leading altcoin hit $310-315, the lowest price in many weeks.
- This meant that from the $490 year-to-date highs, the cryptocurrency had retraced over 35%.
- Since those lows, ETH has bounced by over 15%, reaching $360 on Thursday morning.
- Ethereum still isn’t in a bullish state despite the rally.
- Analysts see the cryptocurrency rejecting $380 in the near future due to technical resistances in that region.
- ETH’s price action may end up following that of the stock market, as has Bitcoin and other markets.
- The stock market is in an uncertain position due to uncertainty about stimulus and the election.
Ethereum Still Isn’t Bullish, Even After Rally
Since the lows around $310, Ethereum has undergone a healthy bounce. According to TradingView, the cryptocurrency reached a high of $360 on Thursday morning as buyers rushed in. $360 is a price over 15% higher than the $310 lows.
Despite this rally, not all analysts are convinced ETH is primed to return to last week’s highs.
One trader shared the chart below on September 9th. It shows that Ethereum remains under the important horizontal at $382-385, indicating “bears are in control.” The chart also suggests that there’s a pool of liquidity in the $300 region that is likely to be tapped by ETH in the near future.
Ethereum dropping $300 from here would mean current buyers would incur a 16.5% loss.
Chart of ETH's price action over the past few days with analysis by crypto trader "Credible Crypto" (@CredibleCrypto on Twitter). Chart from TradingView.com
Another trader echoed the sentiment shared by his peer above.
This trader shared the chart seen below, writing the following on ETH’s potential to break through the depicted resistances:
“$ETH probably breaks 360 resistance this time. However, there’s EMA cluster and supply zone resistance at 380 levels that will high likely push it back down. Until altcoin market becomes more clear I’m scalping.”
Chart of ETH's price action over the past few days with analysis by crypto trader "Credible Crypto" (@CredibleCrypto on Twitter). Chart from TradingView.com
All Eyes on the Stock Market
It seems that Ethereum may be able to ignore these resistances, though, as long as the stock market rallies.
The crypto market’s price action over the past few weeks has clearly been dictated by the stock market, or at least the U.S. dollar, When the S&P 500 and other leading indices traded blood red last week, so did Bitcoin and Ethereum.
When the S&P 500 underwent a relief bounce on Wednesday, so did Bitcoin and Ethereum.
It’s far from a perfect correlation, but many analysts think further strength in legacy markets will only help crypto.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Despite Surging 15% From Lows, Ethereum Still Isn't Bullish