- Ethereum has flashed signs of immense strength despite a fleeting overnight selloff
- This recent decline came about in tandem with that seen by the rest of the crypto market
- Bitcoin plunged below $18,000 before posting a “V-shaped” recovery and rallying significantly higher
- This recovery also helped lead ETH higher, with the cryptocurrency rapidly navigating back up to where it has been trading throughout the past couple of days
- Its recent strength and unwavering uptrend indicate that further upside is imminent
- One trader is watching for a move higher in the near-term, noting that it could rally towards $850 before its momentum slows down
Bitcoin and the entire cryptocurrency market have been caught in the throes of an intense bull run throughout the past few days and weeks, with Ethereum being particularly exposed to the recent market-wide strength.
The cryptocurrency has posted massive gains over the past few days, with its recent break above $500 creating momentum that has accelerated ever since.
Where it trends next will likely depend on its continued reaction to a key resistance level that sits just above where it is currently trading.
If it breaks this level, he believes that a move up towards $850 could be imminent.
Ethereum Shows Signs of Strength as Bulls Absorb Selling Pressure
At the time of writing, Ethereum is trading up just over 3% at its current price of $564, which marks a massive rise from overnight lows of $510.
The intense momentum seen over the past few days indicates that it may soon erase its trend of underperforming Bitcoin, with the cryptocurrency targeting $600.
Where it trends next will likely depend largely on its continued reaction to the resistance that sits just above where it is currently trading.
Analyst: ETH Could Target $850 Once This Key Level is Broken
One trader explained that Ethereum could soon rocket as high as $850 once it can move past one crucial level.
He points to roughly $600 as the resistance to watch, with a break above here allowing for a parabolic rally to new post-2017 highs.
“ETH: Buying here makes little sense to me. I’d wait for reaccumulation around former resistance or for a break above range mean / weekly supply to target $850 next.”
Image Courtesy of George. Source: ETHUSD on TradingView.
The coming few days should provide investors with serious insight into where the entire market will trend in the near-term, as Ethereum’s price action should largely guide altcoins.
Featured image from Unsplash. Charts from TradingView.
