Ethereum Could Be in a Precarious Position as Buyers Fail to Break Key Level
- Ethereum has been underperforming Bitcoin throughout the past couple of days, drifting lower while the benchmark crypto nears its 2020 highs
- Higher risk assets like ETH may be seeing tempered price action because investors fear the sustainability of BTC’s latest push higher
- If it can stabilize and see a continued bout of sideways trading, then assets like Ethereum may be able to push significantly higher
- One trader is noting that until $460 is flipped back into support, however, ETH may be in a somewhat precarious position
- He emphasized that a 4-hour candle close above this level is imperative for bulls
Ethereum has been woefully underperforming Bitcoin throughout the past few weeks – a trend that has persisted up until now, despite the recent strength seen throughout the DeFi sector.
Yesterday, when BTC’s price briefly broke below $16,000, investors panicked and sold ETH until it reached $440, which is when its downtrend halted, and it rebounded.
It is now trading around where it has been for the past week.
One trader is cautious about its near-term outlook, noting that the crypto needs to flip $460 back into support and post a high time frame close above it.
Bulls are in the process of once again surmounting this level, which could mean that upside is imminent in the near-term.
Ethereum Underperforms Bitcoin But Erases Yesterday’s Losses
At the time of writing, Ethereum is trading up just over 2% at its current price of $459. Bulls are ardently trying to surmount its $460 resistance and reclaim this level as support.
Because Bitcoin is strong at the moment, there’s a strong possibility that this level will be broken and held above in the near-term.
If flipped back into support, it could also provide a base for the crypto to rally off of.
Analyst: ETH Remains in a Precarious Position Until $460 is Broken
While sharing his thoughts on where Ethereum might trend in the near-term, one analyst explained that he would like to see a 4-hour candle close above $460 before he flips long on the cryptocurrency.
“ETH / USD: Currently hard to determine if PA has S/R flipped back above $450 but for now it seems price is back above in the short term but still below key resistance at $460. I think patience is the best option here and wait for a few more hourly or 4H closes to find a setup.”
Image Courtesy of Cactus. Source: BTCUSD on TradingView.
Because Ethereum is in the process of shattering $460, the coming few hours could be quite telling as to whether or not it will post a high time frame close above this level.
Featured image from Unsplash. Charts from TradingView.