Ethereum Could Explode Higher if Bulls Defend This Newly Formed Support
- Ethereum could be on the cusp of seeing an explosive move higher in the coming few days
- This notion seems rather surprising, given the weakness seen across the entire market as of late, but its price has been able to hold above one crucial level
- This level could act as a base for further growth in the days and weeks ahead, and ultimately put the control of its near-term trend back into the hands of bulls
- One trader spoke about this possibility in a recent tweet, explaining that he is anticipating Ethereum to begin moving higher in the days ahead
- Where it trends next will undoubtedly depend at least slightly on Bitcoin and the rest of the crypto market
Ethereum has been closely tracking Bitcoin’s price action as of late, which caused it to see an intense decline overnight when BTC plunged to lows of $17,700.
This move lower by the benchmark cryptocurrency created shockwaves that held heavy influence over the entire market, with ETH plunging as low as $528 while the rest of the market also saw some signs of intense weakness.
ETH has since seen what can only be described as a V-shaped recovery, as the cryptocurrency is looking technically stronger than Bitcoin at the present moment.
One trader is now expecting it to see further growth in the near-term.
Ethereum Posts “V-Shaped” Recovery from Recent Lows
At the time of writing, Ethereum is trading up over 3.4% at its current price of $573. This is around the price at which it has been trading throughout the past few days and weeks.
Where it trends in the mid-term may depend largely on whether or not Bitcoin can also continue rising off of its recent lows.
The next key level for ETH sits at $580, as this proved to be strong support over the past day or two. Once broken above, bulls will likely target $600.
Analyst Expects ETH to See Significantly Further Upside
One trader explained in a recent tweet that he is expecting Ethereum to see significantly further near-term upside.
He points to $550 as a key base of support that the cryptocurrency is likely to grow upon throughout the week ahead.
“ETH / USD: Got the wick into the bids as expected from 2 days ago, now we are looking to head back up to the range higher and for bulls to defend $550 with some strength for this week.”
Image Courtesy of Cactus. Source: ETHUSD on TradingView.
The coming days should provide investors with serious insight into the long-term significance of the ongoing V-shaped recovery. If ETH turns lower, it may invalidate the newfound strength stemming from this.
Featured image from Unsplash. Charts from TradingView.