- Ethereum has dropped lower over the past 24 hours after peaking just shy of $400.
- The cryptocurrency currently trades at $382 and is down a mere 0.5% in the past 24 hours.
- Despite the drop from the local highs, analysts remain bullish on the asset.
- One analyst says that he finds it hard “not to be bullish” as $360-370 holds.
- $360-370 has acted as an important horizontal level for the coin over recent weeks.
- Namely, it marked the highs of two key rallies in late September, which resulted in reversals towards $330.
Ethereum Set to Continue Higher, Analysts Say
Ethereum has slipped lower over the past few hours from its local highs around $395. The coin currently trades for $382, not too far from those highs but still down by a few percent.
Despite this rejection just shy of the pivotal $400 resistance, analysts remain optimistic. One crypto-asset trader recently noted that with the cryptocurrency holding above critical supports, price action is healthy
“Think the market is looking to make a full recovery if price get flip $380 into support but that said current price action is looking very bullish and its great to have flipped $360. The chance of retesting $280 gets less and less each day we hold above these levels… $ETH / USD Still finding it hard not to be bullish… Price would have to break below $360 for any real shift in momentum to the downside, healthy looking PA.”
Chart of ETH's price action over the past few weeks (since end of July) with analysis by crypto trader Cactus (@TheCryptoCactus on Twitter) Source: ETHUSD from TradingView.com
Others are also optimistic about Ethereum on a macro basis.
One trader noted that as long as Ethereum holds the prices in the vicinity of $350, it is set to double towards $720 in the coming months. $350 has long been an important level for ETH, having acted as a launchpad for the coin in 2017 and in the middle of 2018 during a dead cat bounce.
Chart of ETH's price action over the past few years with a Renko candle analysis by crypto trader Cold Blooded Shiller (ColdBloodShill on Twitter). Source: ETHUSD from TradingView.com
All Eyes on Bitcoin
Supporting upside in the price of Ethereum is an optimistic outlook for Bitcoin.
Tyler Winklevoss, a co-founder of Gemini, recently said that with the U.S. government pursuing another stimulus package, Bitcoin is making increasing sense:
“Stonks love nothing more than wen the money printer goes brrrr like an A-10 warthog. It’s full-fledged addiction that’s not going to end until it has to. When that will happen is hard to predict, but what’s certain is that #Bitcoin will b your only refuge.”
Analysts expect further stimulus to suppress the U.S. dollar, which should boost alternative assets like gold and Bitcoin.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com It's "Hard to be Bearish" on Ethereum as Key Supports Hold: Analyst