Ethereum’s Rebound is “Getting Tired” as Analyst Eyes Move to $520
- Ethereum has been climbing higher today alongside Bitcoin and the rest of the crypto market
- The strength seen as of late comes as Bitcoin puts some serious distance between its recent lows and its current price levels
- This indicates that bulls are in full control and are looking to form a “V-shaped” recovery that could allow for significantly further upside in the days and weeks ahead
- Where the entire market trends next will depend largely on BTC, but ETH’s price action may influence that of altcoins
- One trader is noting that Ethereum’s rally appears to be “getting tired,” which could indicate that it will retreat lower before seeing any type of intense rebound
Bitcoin has been guiding the entire market higher over the past couple of days, with Ethereum rallying up towards the mid-$500 region. This comes close on the heels of an intense correction that led the entire market to plunge.
The recovery from the recent lows has favored bulls, as it shows that the market is still caught within a crystal-clear bull market, and that further upside could be imminent in the near-term.
In a recent tweet, one trader stated that Ethereum’s recent rally might get tired and require a pullback towards $520 before extending further.
Ethereum Sees Slowing Momentum as Bulls Struggle to Break Key Resistance
At the time of writing, Ethereum is trading up just over 2% at its current price of $550. This is where it has been trading throughout the past few days and weeks, with the selling pressure seen around the price region being somewhat significant.
Where the rest of the market trends in the days, weeks, and months ahead will depend largely on Bitcoin.
Although ETH may guide the altcoin markets, it has been taking its cues from the benchmark cryptocurrency.
At the moment, Bitcoin’s strength is lending itself to bulls’ favor, and there’s a chance that they will be able to erase all of the market’s recent losses in the days and weeks ahead.
Trader Claims ETH Rally is Getting Exhausted
One trader isn’t optimistic that this ongoing Ethereum rally will last for too much longer.
He contends that it will see a pullback towards $520 before it can recoup its momentum and rally past the resistance within the mid-$500 region.
“Think ETH is getting pretty tired now, seeing if I can squeeze out $550-555, happy with the 10% moves from spot and 6% from lev today. Will be looking for the reaction around $520 for clues on the next strong move.”
Image Courtesy of Cold Blooded Shiller. Source: BTCUSD on TradingView.
Bitcoin’s continues reaction to its break above $18,000 should provide some insights into whether or not Ethereum will climb higher.
Featured image from Unsplash. Charts from TradingView.