- Ethereum’s price action throughout the past few days and weeks has been rather lackluster
- The cryptocurrency has been underperforming Bitcoin and even some of its altcoin counterparts
- This trend is shifting slightly today, as the entire crypto market is starting to move higher
- One analyst is noting that ETH is bearish from a purely technical standpoint, as it is currently trading below multiple key technical levels
- Yesterday, it closed beneath both its 50 and 100-day moving averages. The last time this occurred was in April.
Ethereum and the aggregated crypto market are currently in the process of bouncing due to Bitcoin’s surge past $10,700.
This rally has come about due to news regarding publicly listed company Square’s decision to purchase $50 million in Bitcoin that will be held on their balance sheet – a strategy similar to that seen by MicroStrategy.
ETH still has quite a bit of work to do before it is able to reverse its downtrend and rally higher.
One analyst is noting that it currently is in a far more precarious spot than BTC, as it recently closed beneath a few crucial levels.
Until these levels are surmounted, it may continue struggling.
Ethereum Rebounds Slightly as Crypto Market Follows Bitcoin Higher
At the time of writing, Ethereum is trading up just under 1% at its current price of $344. This is around the price at which it has been trading at throughout the past few days and weeks, but it does mark a notable rebound from morning lows of $338.
This 1% push off of its lows came about directly after Square announced that they are purchasing $50 million worth of Bitcoin to hold as a reserve asset.
The public company owned by Bitcoin advocate and Twitter founder – Jack Dorsey – is the second major corporation to adopt this strategy.
This certainly created some momentum within the market, but it remains unclear as to whether or not this could be a catalyst for a fresh uptrend.
ETH Must Reclaim These Key Levels to Rally Higher
One analyst noted that yesterday’s daily close took place below a few crucial levels. It is imperative that these are recaptured today in order for Ethereum to avoid further downside.
“ETH closed below the 50 and 100D MA’s. 50d curling down now. Outside of one day the last time was in April.”
Image Courtesy of Pentoshi. Chart via TradingView.
The coming few days are vital for understanding Ethereum and the entire crypto market’s near-term outlook.
Featured image from Unsplash. Charts from TradingView.