Ethereum Fails to Surmount Crucial Resistance as Traders Eye a Pullback
- Ethereum has incurred immense momentum throughout the past few days
- This notable upswing seen as of late has allowed it to outperform Bitcoin and many other major altcoins
- Some analysts have even observed that ETH’s price action is starting to influence that of Bitcoin
- Analysts are now noting that it could see a notable pullback in the near-term, which may be necessary if bulls want to extend their momentum further
- This possibility will be invalidated if buyers break one crucial level
Ethereum and the aggregated cryptocurrency market have been growing stronger in recent times.
After a prolonged period of underperforming Bitcoin and trading around the lower boundary of its macro trading range between $230 and $250, ETH has finally shattered this trend and has started gaining some independence.
Earlier this week, the cryptocurrency incurred notable momentum that ultimately allowed it to climb from lows of $230 to highs of $290.
This is a high time frame resistance level, and buyers have yet to break above it.
One analyst is now noting that he believes the crypto is ready to see a pullback, which could lead it down towards $250.
Ethereum Shows Signs of Strength as It Enters Fresh Consolidation Phase
At the time of writing, Ethereum is trading up just under 2% at its current price of $284.50. This is around the level at which it has been trading throughout the past day.
ETH is now entering a consolidation phase as sellers continue defending the upper-$280 region. If this level isn’t broken above, the crypto could be poised to see a notable decline.
One analyst spoke about this possibility in a recent tweet, explaining that he is eyeing a move down towards $250 in the near-term.
“ETH: If I had to speculate for the ‘near’ future, it would look like this. Wouldn’t be surprised if there was a greater retest of 250-260 (yet to see a major shakeout) before the 4th attempt at resistance. With that 4th attempt, I’d expect an explosive move upwards.”
Image Courtesy of Chase_NL. Chart via TradingView.
Here’s the Crucial Level ETH Bulls Need to Target to Sustain Its Uptrend
For the cryptocurrency to continue climbing higher in the days and weeks ahead, Ethereum must shatter $307.
While speaking about this specific level, one analyst explained that a close above it would open the gates for a sharp rally to $400.
“Daily resistance around $286 and no close here means potential pullback, before the next test. But above that around $307 is the big test. Once ETH breaks and closes above $307 – I don’t see long until it hits over $400 – at least on higher time frames,” he noted.
Image Courtesy of Josh Rager. Chart via TradingView.
If Ethereum is unable to surmount the resistance it faces in the upper-$280 region, it is probable that it will see a sharp decline.
Featured image from Unsplash. Charts from TradingView.