Ethereum’s Macro Outlook Shapes Up as Technical Strength Grows
- Ethereum has been closely tracking Bitcoin as of late, which has caused it to see some consolidation
- Where the crypto trends in the mid-term should depend largely on ETH’s continued reaction to the $600 region
- Just as $19,000 is a key level for Bitcoin at the present moment, $600 is a crucial level for ETH, as breaks above this level often lead to inflows of buying pressure
- Where the cryptocurrency trends in the days and weeks ahead should depend largely on BTC
- One trader is noting that Ethereum does have some independent macro strength that could allow it to see significantly further upside in the days and weeks ahead
- He is specifically looking for a move up towards $1,200 next
Ethereum and the rest of the crypto market have been consolidating over the past couple of days. Both bulls and bears have been unable to influence its price action, as they have reached an impasse as the crypto trades around $600.
If it can post a sustained break above this level, it could be well-positioned to see significantly further near-term momentum.
An inability to climb above here, however, could lead to some technical weakness.
One trader expects an imminent move to the $1,200 region, noting that Ethereum’s macro technical outlook is shaping up to be highly bullish.
Ethereum Consolidates Alongside Bitcoin as Sideways Trading Persists
At the time of writing, Ethereum is trading down marginally at its current price of $596. This is around the price at which it has been trading throughout the past few days.
This consolidation phase comes as Bitcoin struggles to gain a strong foothold above $19,000. It has been heavily influencing ETH’s price action as of late, which means that how it responds to this level could influence Ethereum’s response to $600.
Analyst: ETH’s Macro Strength Signals Move to $1,200 is Imminent
As such, he believes that a move up towards $1,200 could come about in the months ahead, with this marking a 100% rise from its current price levels.
“ETH / USD: Looking pretty tasty on the bi-weekly chart. Higher!” He said while pointing to the below chart.
Image Courtesy of Cactus. Source: ETHUSD on TradingView.
Bitcoin will undoubtedly influence Ethereum’s trend in the mid-term, making it imperative that the cryptocurrency maintains above $19,000.
Featured image from Unsplash. Charts from TradingView.