- Ethereum has been struggling to match the bullish price action seen by Bitcoin as of late, which has led it to consolidate around $380
- The past couple of days have been no exception, and the cryptocurrency has yet to gain any bullish momentum despite BTC pushing against $14,000
- It remains unclear as to when there will be an impetus for investors to rotate capital away from BTC and into ETH
- Once this does occur, however, ETH could see some major gains in a short period of time
- One trader believes that $390 is the key level to watch in the near-term
Ethereum and the rest of the crypto market – except for Bitcoin – have struggled to gain any momentum over the past few days and weeks.
The stagnant price action seen by ETH also comes amidst the phase 0 rollout of Ethereum 2.0 – which was widely expected to be a catalyst for upside.
That being said, its inability to rally so far indicates that some underlying weakness plagues it.
One analyst is noting that this weakness will likely persist until it can break above $390. He contends that a break above this level will allow it to rally and catch up to Bitcoin.
Ethereum Struggles to Gain Momentum as Sideways Trading Persists
At the time of writing, Ethereum is trading down just under 2% at its current price of $380. This is around where it has been trading throughout the past few days and weeks.
Its inability to gain any directionality has been somewhat surprising, as the cryptocurrency has broken its correlation to Bitcoin for the first time in a long time.
There is a chance that some downside will be seen in the coming few days if bulls are unable to step up and propel it higher, as even the early stage of the 2.0 rollout hasn’t catalyzed any momentum.
Analyst Claims $390 is Crucial to Surmount
While sharing his thoughts on where Ethereum might trend next, one analyst explained that $390 is a crucial level to watch closely in the near-term.
He believes a break above it could send it flying past $400.
“ETH / USD: I don’t short Ethereum because im not a moron, that said currently PA needs to get above and flip $390 into support for us to start heading higher, seems to be that price as gotten comfortable below $400 recently… Thinking that tomorrow we could see $400+. Send it.”
Image Courtesy of Cactus. Source: ETHUSD on TradingView.
If this rally does take place, it could also create a tailwind that carries some smaller altcoins higher as well.
Featured image from Unsplash. Charts from TradingView.
