Ethereum Slides to Crucial Support Level as Analysts Eye an Emerging Bull Flag
- Ethereum posted a massive breakout yesterday that allowed it to put a firm end to the bout of sideways trading that it was previously experiencing
- The cryptocurrency is now attempting to stabilize within the mid-$400 region
- It is important to note that $450 does appear to be a resistance level, as this is around where its momentum faltered during its recent push higher
- One analyst is now noting that $430 is a crucial support level that must be guarded
- He notes that a dip below here could be enough to catalyze a massive retrace
Ethereum is now one of the only major altcoins that has clear upwards momentum, as both Bitcoin and XRP have been stuck below firm resistance levels over the past couple of weeks.
This latest ETH rally came about rather unexpectedly, with the cryptocurrency’s price slowly pushing up against $400 before breaking out.
The momentum incurred at this point was significant and appears to be emblematic of the strength of Ethereum’s macro uptrend.
As for where it may trend next, analysts are watching to see how it reacts to a rapidly emerging bull flag.
That being said, for it to see further gains, bulls must defend its $430 support level.
Ethereum Forms Bull Flag Following Intense Rally to $450
At the time of writing, Ethereum is trading down just over 1% at its current price of $432. This is around the price at which the cryptocurrency has been trading for the past day.
One result of this recent price action has been the emergence of a bull flag that the cryptocurrency has been forming over the past day, although it has yet to post any type of clear resolution to this pattern.
“Textbook really. Would like to see it get sent here so I can rest easy,” one analyst explained while pointing to the chart seen below.
Image Courtesy of Chase_NL. Chart via TradingView.
Here’s the Crucial Level ETH Needs to Defend to See Further Upside
For Ethereum to see further near-term upside, it is imperative that its buyers ardently defend $430. If this level is lost, the crypto may be prone to seeing significant downside.
While speaking about this, one analyst explained that it is vital it pumps before breaking below this level.
“Bullish bias above 430$ – someone pamp it please,” he said while offering a chart showing the significance of this level.
Image Courtesy of Teddy. Chart via TradingView.
In order for Ethereum to sustain its newfound momentum, it may need Bitcoin to follow its lead and break above $12,000 – providing the entire market with a boost.
Featured image from Unsplash. Charts from TradingView.