Ethereum’s Market Structure Suggests Move to $3,600 Could be Brewing
- Ethereum is seeing some technical weakness today despite the strength seen by Bitcoin
- Some bearish events within the DeFi sector may be contributing to this, including a massive smart contract exploit that cost investors millions
- This has caused it to see some notable underperformance of Bitcoin throughout the past 24 hours
- Despite this short-term technical weakness, one analyst is still noting that the bull case is growing stronger each day
- He notes that a move to $3,600 could come about in the next year or so, which would mark a roughly 400% rise from its all-time highs that were set in the first week of 2018
Ethereum is struggling to gain any momentum as its price drifts down towards its support around $400.
The cryptocurrency has been trading at this level for quite some time, with bulls struggling to break above the heavy resistance at $420.
The rejections it has posted at this level have contributed to its technical weakness, and the spotlight is once again being directed onto Bitcoin as the crypto tries to break above its crucial $13,200 resistance level.
One analyst is noting that Ethereum’s technical outlook remains highly bullish despite this short-term setback.
He is setting his sights on a move to $3,600 in 2021, noting that its macro market structure justifies this extremely bullish sentiment.
Ethereum Struggles to Gain Ground Against Bitcoin
At the time of writing, Ethereum is trading up marginally at its current price of $406. This is around the price at which it has been consolidating for the past day.
It is important to note that $420 is the key level that must be shattered in the near-term. Each tap of this level has sparked a flurry of selling pressure that sends ETH reeling lower.
This may soon change, as Bitcoin’s attempt to break above its key resistance could create a tailwind for ETH.
Analyst: ETH Poised to See Serious Gains in Coming 14 Months
He contends that a move towards $3,600 is in the cards.
“ETH HTF Analysis: My original opinion that Ethereum was heading to $3000 could have been a little conservative thinking back. $1100 > $2800 > $3600 price discovery resistance levels. Excited to see that 2021 brings in terms of PA.”
Image Courtesy of Cactus. Source: ETHUSD on TradingView.
If this possible path forward does play out, it hinges on Bitcoin and the rest of the crypto market also entering a parabolic bull market.
Featured image from Unsplash. Charts from TradingView.