- Ethereum’s price has remained stagnant as the cryptocurrency trades at the lower end of its key resistance region between $380 and $400
- The cryptocurrency has been unable to garner any sustainable buying pressure as it trades around this price region
- It does appear that ETH is waiting for guidance from Bitcoin before it makes a big move, and BTC is currently caught within a consolidation phase as it struggles to surmount the lower-$11,000 region
- One trader does believe that ETH is at a pivotal point, as its reaction to a few key horizontal and technical resistance levels could determine its future in the days and weeks ahead
Ethereum and most other altcoins have been largely trading sideways throughout the past several days and weeks, being unable to garner any clear momentum as all eyes watch to see where Bitcoin will trend next.
While speaking about the cryptocurrency’s near-term outlook, one analyst emphasized that it is at a decision point, as its reaction to a few key resistance levels should determine its near-term fate.
These levels sit just above where it is currently trading at, and there’s a strong possibility they will be visited if Bitcoin breaks above the lower-$11,000 region and creates a tailwind for the entire market.
Ethereum Struggles to Gain Momentum as All Eyes Watch Bitcoin
At the time of writing, Ethereum is trading up marginally at its current price of $385. This is around the price at which the crypto has been trading at throughout the past several days.
ETH’s ongoing consolidation phase has done little to offer insights into its mid-term outlook, although its recent break above $380 was a positive technical development.
For this to translate into further strength, it is imperative that it closes its weekly candle above this level and sees an extension of its momentum throughout the week ahead.
Analyst: ETH is Reaching a Pivotal Point
He specifically is pointing towards the resistance at $391 and ETH’s 50-day moving average as two levels that are crucial for bulls to break.
“ETH, $391.22 & Daily MA50 are key levels. If you are Bear here is a good level to short, if you’re a Bull you want to see PA close above outlined resistance.”
Image Courtesy of Wolf. Chart via TradingView.
How Bitcoin trends as it sits between $11,000 and $11,300 will likely have serious implications for Ethereum and other major altcoins.
Featured image from Unsplash. Charts from TradingView.