Ethereum has Reached a Key Demand Zone as Analysts Eye Parabolic Move

Ethereum has been struggling to gain any serious momentum as of late, with its weakness against Bitcoin causing its USD trading pair also to flash signs of immense weakness.

Where it trends in the near-term might depend largely on Bitcoin’s price action, as any continued upwards momentum could cause altcoins like ETH to hold to the recent pattern of underperformance.

One trader explained that the upcoming CME futures listing coupled with its strong support indicates that a serious push higher is imminent in the near-term.

Ethereum Continues Losing Ground Against Bitcoin 

At the time of writing, Ethereum is trading down just under 2% at its current price of $650. This is around the price at which the crypto has been trading throughout the past few days and weeks.

The selling pressure it has been facing has primarily come about due to weakness seen against the cryptocurrency’s BTC pair.

Bitcoin’s strength has caused most altcoins to lose ground against it and may continue hampering their price action in the mid-term.

Analyst: ETH Reaches Key Support as Selling Pressure Mounts

One trader explained in a recent tweet that Ethereum is now nearing a key support level that could continue bolstering its price against Bitcoin and allow it to see some further upside.

He also notes that the upcoming CME futures listing could be a catalyst for growth.

“ETH – Weekly macro. Back on demand zone. I’m expecting a lower high to print very soon, before the beginning of a reversal. As money floods in the crypto, it’s only a matter of time before the second biggest asset gets institutional funding. Not to mention CME opens in Feb.”

Image Courtesy of NekoZ. Source: BTCUSD on TradingView.

It may take some time to truly understand Ethereum’s positioning against Bitcoin, but for the time being, it is showing some immense signs of weakness.

Featured image from Unsplash.
Charts from TradingView.
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