Ethereum Is At a Pivotal Support—and That’s Good for the Bull Case
- Ethereum has strongly underperformed over recent days, but it may bounce soon.
- One trader noted that the coin has reached an important technical support level as per the Ichimoku Cloud.
- This is likely to result in a bounce, analysts say.
Ethereum Poised to See Rally as Crucial Support Is Hit
Ethereum has strongly underperformed over recent days. The leading cryptocurrency has slipped from around $420 to $386, despite the price of Bitcoin setting new year-to-date highs in a strong surge upward.
This underperformance has shocked many investors. But according to an analyst, Ethereum is primed to move higher in the days and weeks ahead.
One crypto-asset analyst shared the chart below recently. It shows that Ethereum has reached an important technical support level that marked the highs of the short-term rally earlier this month. Analysts think that Ethereum will bounce from here:
“I do believe $ETH will bounce very hard from this daily Kijun. Currently Heikin Ashi indecision candle setting up just above this area of support. We could flip the daily trend tomorrow or Monday.”
Chart of ETH's price action over the past few weeks with analysis by crypto trader Trading Cyclist (@Fullgastrader on Twitter). Source: ETHUSD from TradingView.com
This latest analysis comes shortly after the same trader noted that the cryptocurrency has printed a number of bullish Ichimoku Cloud signals.
“$ETH hasn’t even started yet: retested the flat Tenkan, chikou pointing up after bounce on Kumo, bullish future (twist). Spot buys done here Ballot box with check. Opening Perps on 1st blue HA candle / break of WF.”
Bitcoin Is Also Bullish
Bitcoin itself is also bullish, increasing the chance the leading altcoin moves to the upside. Qiao Wang, a prominent industry analyst, recently commented:
“#BTC has been shrugging off 3 simultaneous narratives from the traditional market – election, covid, and stimulus – as well a bunch of crypto exchange FUD since September. If you are not convinced we are in the early stage of a BTC bull market you’ve not been paying attention.”
The cryptocurrency’s technical trends are also in a positive state. Analysts note that the cryptocurrency closing its monthly candle above $13,000 is extremely positive for the bull case.
There is the concern that Bitcoin failed to move above $14,000 on the monthly candle but this is not a large concern yet as prices hold steady.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Ethereum Is At a Pivotal Support—and That's Good for the Bull Case